New thread to separate from the chart view.

One thing worth noting re SKL fundamentals is the comment in the Chairman's notes that states "...its (the Industrial division) EBITDA is anticipated to increase to approximately 60% of group EBITDA in the 2007 year".

This statement is significant. Last year, agri provided $16m EBITDA and industrial $17m. Now, unless agri is shrinking, this is a substantial change. Based on agri remaining constant, a 60% contribution from industrial would indicate EBITDA of $40m - a $7m or 21% increase on prior year. A small amount of growth in agri to $16.5m would indicate EBITDA of $41.3m, or a 25% increase.

While interest expense is likely to increase, an estimated increase in interest cost of $2.5m would still see an increase in NPAT of $3 - $4m, taking NPAT to $16.4-$17.4m. Allowing for some dilution from the DRP, this would put them on a forward P/E of 8.8 - 9.3 at current share price of $1.44.