insights on ebet, page-4

EBT has several positives:

- projected profit of $2m for a company valued around $10m

- recurring revenue of $20m+ and probably higher in 12/13

- good gross margins

- footprint in all key gaming states in Aust

- addition of key gaming personnel in the past 12 months

- successful history of positive growth in the company

I'm extremely comfortable having a significant holding in this company and have continued to add to my position over the past 12 months.

I would, however, like to see a change in the Board structure. While it is admirable that the Chairman has a big chunk of the company, I'd prefer someone who could challenge Management in taking the company onto the next level, which they are well placed to do.

In finishing, I'd highlight the $20m recurring revenue. Having this amount in the bank at the start of the financial year is a massive boost for a company the size of EBT.

My prediction is that the SP will see 10c within the next 12 months.