after being out about the last 3 years.

The valuation is compelling, and there are reasons to believe the company is going the right way:
1. Strength in the Aussie dollar against the USD means that Oz will be a greater contributor to revenue and earnings.

2. Sales decline to P&G shows signs of ending as P&G sees organic growth on the horizon
http://www.pginvestor.com/phoenix.zhtml?...

3. Manufacturing efficiencies are likely to help gross margin, with greater utilization of the new Batavia plant and closure of Framingham Mass. Hopefully this will be enough to outweigh margin impacts of recent contract renegotiations.

4. LABL profits are highly leveraged to sales volume, and volume appears to be increasing again, based on the sequential increase reported in the June results and the subsequent overall economic improvement.

5. Debt from the Collotype acquisition finally appears under control, with total debt down to 3.65 times the annualized operating income reported for June quarter.

At just 10 times calendar 2010 earnings, LABL looks like a winner again.