What is the thesis for investing in EXFO? In an average year they might give 9% average return on equity. Even if I could buy them for 1/2 book value around $1.50, I'm only getting about an 18% compound return. And while that seems like a lot, it is not really adequate compensation for the risk in this company. Their profitability moves around a LOT, and they have plenty of negative earnings years.

I do see a lot of cash on the balance sheet, and at $1.50 I have to admit there is a strong value argument based on the EBITDA / Enterprise Value margin.

Is the company going to grow?