Stockmarket Ramblings - UXC

UXC is an interesting small cap company listed on the ASX. Not so long ago its shares traded as high as $2.83. Currently they have traded as low as $0.99, a drop of 65% in value. The company announced that they were unable to explain why this should be as nothing has changed within the company and its operations. This is a company that appears to have many of the features that are attractive to Warren Buffet's Berkshire Hathaway Incorporated when looking for potential takeover targets. It is trading at a price under 7% annual earnings, and over the past few years its increase in earnings have averaged at 42%. The comparison of UXC's half yearly earnings shown below are indicative of this company's growth and potential. With the end of financial year a couple of weeks away and the prospect of a distribution in the vicinity of 5.5 to 6.5 cents per share, this must be a stock worth having at even double the the current price.


Half Year Report of
UXC LIMITED and its controlled entities
For the Six Months Ended 31 December 2006
Six Months Ending
31 December: 2007 2006 2005 2004 2003
Revenue ($'000) $272,897 $197,027 $133,311 $115,249 $87,126
NPAT ($'000) $12,175 $9,363 $6,841 $6,226 $3,969
Basic EPS (Cents) 6.44 5.38 4.20 4.15 3.13
Interim Dividend Declared (Cents) 4.25 3.50 2.50 2.25 2.00
Dividend Payout Ratio (%) 66% 54% 60% 54% 64%
Total Assets ($'000) $340,408 $271,550 $186,859 $202,579 $126,971
Return on Assets (% per annum) 7.2% 6.9% 7.3% 6.1% 6.3%
Shareholders’ Equity ($'000) $155,859 $130,376 $105,324 $101,367 $74,312
Return on Equity (% per annum) 15.6% 14.4% 13.0% 12.3% 10.7%
Gearing Ratio (%) 35.7% 25.4% 18.8% 25.8% 0.0%
Avail Franking Credits ($'000) $19,500 $17,900 $18,000 $18,300 $15,700
Market Capitalisation ($’000) $346,400 $318,200 $148,200 $127,400 $111,100