MACA Limited (ASX:MLD) keeps on trucking

I don't have a lot to say about this one. Half yearly is out and earnings are up 9% against previous corresponding period - on track to grow revenue by 20% for the year. Order book is up to a record $1.4b with an average contract length of 3 years. Much of the revenue for the next few years are already contracted, so any additional wins in the near term will see further revenue growth.

However I've sold up of late - came out with a single-digit percentage gain, so the trade has been only so-so. Just not too sure about this one, so decided best to sit on the sidelines for the time being. There's probably 3 reasons why I've done this, none of them particularly strong reasons.

1. The earnings growth do not fit the profile that I'm after. Though with a P/E of around 10, it's still inexpensive.
2. Directors are selling.
3. Increased capital expenditure. Last year they did $34m. For the first half FY12 they've ready done $51.3m. With another $25.5m committed after the reporting period, they're definitely on the way to double the capex spending and then some. I understand that they are ramping up for some of the new contract wins, but it does appear to be on the high side. Something to keep an eye out on.

MLD last traded at $2.34