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6.1¢ cirrus networks holdings limited

Add a fed gov contract or two and watch this baby fly- mgt has...

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mwap

164 Posts.

29/08/17

17:50

Post #: 26844672
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Originally posted by Wise_One ↑

Just running rough numbers.

2H17 had 560k of underlying net profit

Now - the market is forward looking & in each of the last 4 halves, both revenue & profit has increased.

For the sake of the exercise, let's assume FY18 delivers flat profit - i.e. Only 1.12m profit (2 x 560k)

Given the aggressive growth profile, this should attract a PE of 40-100x. Again, for conservatism, let's assume 40.

That places mkt cap at 44.8m (40 x 1.12m) or SP of 5.6c

That should be the base case...

Now, the company have said the FY18 focus is to improve NPAT. A very small increase in NPAT will have an exponential impact on the SP given the PE

Should NPAT come in at 3m (IMO extremely conservative), with a PE of 40x that places the mkt cap at 120m or 15c

The runs are now on the board & it's now a matter of getting noticed by the market.

A new investor presso & roadshow will go a very long way IMO.

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Add a fed gov contract or two and watch this baby fly- mgt has tick all the boxes thus far.
No BS just getting on with the job of growing the company.

CNW Price at posting: 2.3¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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