ROTARY ENGINEERING - $143.8m CASH . TRADING AT NAV + 12% YIELD

to reach your 60c price again might be challenging now as it is a 50% return upside from 40c level
But once Rotary can secure another big project next year . why not ... profit guidance and bad news had been factored in , such that it had caused it to fall from $1+ to 40c
I would recommend you buy and accumulate more now as it is cheap to average down your cost .
While in the meantime , the dividend yield from Rotary is impressive enough to reward you for your waiting

the best investment decision about rotary is it's very high cash balance of $143.8 million . It is rather huge for a penny stock like Rotary . Even some blue chips can't boast this kind of cash reserves .
And being in NET CASH , the company has no worry for debt issue even in a crisis .
It pays solid dividend twice yearly at least .

Last 2 years , Rotary paid out 4.8cents dividend . Even if share price goes up to 48c , the yield is still a high of 10% .
Hold it for a few years and your share is free already . Capital gain + free shares + dividend = easily > 100% returns

just playing the devil advocate here, no offense.
1) Cash balance has no meaning, net cash per shares is more important. After subtracting liability net cash is 51 million, net cash per shares is 8.9 cents.
 
2) Dividend is not guaranted, it depends on profits and cash flow.
 
3) Let's assumed they continue to pay dividend, it will be out of cash flow/ and retained earnings(highly unlikely to turn in a profit by year end), which will mean the NAV will have to be adjusted downwards, after already buring 150 million cash and counting.
 
4) At the end of the day, earning projections into the next 2-3 years is very important in valuing a company. Given the fateful project has no closure yet, it is difficult to do any meaningful projection. I agreed with Burned, wait for the dusk to settled. 
 
just my 2 cents worth
 
 

let me share with you the huge prospect from the ME region for oil & gas :
The GCC’s oil and gas industry is planning to invest $666 billion to boost its capacities, as oil prices remained bullish in the year .
GCC is known as the GULF Cooperation Council with members namely Bahrain , Kuwait , Oman , Saudi Arabia , Qatar , United Arab Emirates , Jordan , Morrocco
Similar projections were made by Booz & Company, a management consulting firm, which recently estimated “a wave of capital projects worth more than $1.1 trillion in projected spending in the coming decade,” approximately one-fourth of the industry’s total global investment through 2020
On May 12, Abu Dhabi National Petroleum Construction Company or NPCC chief executive Aqeel Al Madhi revealed Abu Dhabi will tender new projects worth $7 billion this year. Abu Dhabi seeks to boost output to 3.5 million barrels a day by 2018 from about 2.8 million barrels a day now.

Saudi Arabia will need to invest over 500 billion riyals ($133 billion) over the next 10 years to meet rapidly rising power demand, Saudi Water and Electricity Minister Abdullah al-Hussayen said.
The country with the biggest Arab economy and a population that has ballooned to over 27 million faces sporadic power cuts in summer when demand for air conditioning surges.
“There is a need for projects over the next 10 years with investments that exceed 500 billion riyals,” Hussayen said at a water and power forum.