Over the last 12 months, GRC has generated no cash. In all of 2008 too, free cash flow was zero while the company reported good "earnings". This is usually a sign of aggressive accounting or borderline fraud. Capex has been running 4x depreciation. It looks like the company is merrily spending on capex without depreciating properly. Even in a best case scenario, one of these quarters, a big slug of depreciation is going to hit and the company will miss estimates. Even without that, if you put a 15x multiple on forward earnings, you get a $16 stock. Actual earnings may turn out to be only half as much.