Recent acquisition of IES investments looks good to me. Fully equity funded, which will improve the balance sheet, although may create a bit of an overhang with approx 36m shares issued at 68-70cps for funding.

Only a part year contribution to FY07 and will be some integration costs. I'm working on 07 NPAT of $10.5m and 2008 of $15.7m, putting them on forward P/E of 10.8 and 7.2 respectively. I value at $1.19.

Big improvements in return on capital should make them much more attractive - need a re-rate in the share price so they don't keep funding acquisitions out of cheap shares! But now that the balance sheet has been improved, this should not be necessary for a while.