Doesn't look like this is a very active board so not sure who's watching. Even so, I thought it might be worth posting about why I bought some RSW yesterday. This is a company I have followed for years with some admiration. I held shares aeons ago but sold at a profit and later regretted as they went on to become highly rated.

Although they have remained on my watch list I always regarded them as fairly priced at best and too expensive at worst. I was struck by what they had achieved last year and by just how high the SP rose in the aftermath and never dreamt that they would become buyable again so quickly. However, I found myself looking at a stock which even in the depths of a recession a couple of years ago when EPS fell to just 9.3p but being rated at a p/e of 50 ish looking cheap by comparison. RSW have always seemed to be rated at a p/e in high teens/low 20's but today the historic p/e is about 11 and if the forecast is met that will fall to 10. The baby has well and truly been chucked out with the bathwater IMO.

This is the sort of company I feel drawn to, one with excellence at its core and a growing demand for its products which is not subject to fashion or financial jiggery pokery. There is uncertainly in the short term about how well their markets will hold up and we may yet see a 2009 style drop in earnings. To be honest, that's not a major worry so long as the longer term outlook is favourable, which I am convinced about. Meanwhile the dividend is a bonus. Bob