STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

Margin improvement

[slimjim11]

I'm impressed with the improving margins on every line. With a thin margin business, I like the management commentary in the conference call about improving pricing power on the revenue line, and tight control of costs including eliminating the need for hundreds of buses through efficient route and timing planning. It looks to me like improving margins can be expected in the coming quarters, putting further downward pressure on the Payout Ratio, which any of us can calculate on a TTM basis. The $1.2 MM impairment charge on the oil and gas properties will disappear next quarter. The yield is down to 10.9% as the shares have risen. Is that yield low enough for the bears who called 14% unsustainable? I'm still enjoying the irony.