THIRD TIME IS THE CHARM

SXC.TO

I nibbled some SXC this morning @2.05, probably paying too much (as usual). I was rather impressed with its last quarter results, and opportunities ahead. I had own this for a number of times and never made any money. It appears to have a rather decent business model, but results were highly inconsistent in the past. It seems to have everything together in the last few quarters. Revenues and earnings growth is well over 20%. Guidance is decent as well. Balance sheet is clean with still some cash for potential acquisitions. There appear to have a lot of business opportunities ahead and it is only matter of execution. It is traded at about 20X of its 05 EPS with a PEG just under 1.0 times. I expect it will earn 0.15 for 2006, which could result in a $3.0 price in a year time. What this company needs is consistent delivery. Next few quarters will be crucial.