spike today, page-2

Hi rodb111

The July 2013 revenue for Malaysia looks good (see below). It will be interesting to see what the ‘September 2013’ quarterly numbers look like for the whole group. If IPP have become profitable this could increase interest in the stock and also reduce the chances of shareholders being diluted by future Capital Raisings.

Even though IPP may look overvalued today, as revenue increases profits should increase at a faster rate.

Using REA as an example, REA’s Revenue and NPAT were:
Year Revenue NPAT
2004 $19m $2.5m
2007 $107.3m $15.1m
2010 $194.3m $50.7m
2013 $336.5m $109.7m

It is still early days for IPP and there is no guarantee that IPP will be as successful as REA but it does look like IPP has many years of strong growth ahead of it.