looking at net income and payouts this doesnt seem right
What, you think a PE of 10 for this company is too high? In the line of business they're in, with no debt, and on the verge of turning in higher sales and profits? The current ratio is over 8.
The company could be bought out at any time for a price 5 or 10 times what the stock trades at and it would be considered a reasonable purchase price.
Good luck shorting.