Ann: Appendix 4C - quarterly, page-75

I dont think its as simple as that. My modelling tries to take into account expectations. The share in my opinion will trade in a range between 50c ( I had hoped to buy some cheaply in the 40ies - if there was June selling - I think there is a buyer willing to underpin 50c.) and a top of 60c if expectations are for relatively good growth. If they are seen to have done enough to justify a really good growth next year than maybe you could get as high as 70c

The catalyst - my opinion , is for something to change that view. My bet on that is that they have 67,6 million shares in issue and to get to the magic $1.00 per share they need to earn around 7c per share - Really my target is more around market cap so its $100 million market cap that I want and thats either 100 million shares or 80 million with a higher PE. To do that they have to $10 million NPBT and around $7 million NPAT with no more than 100 million shares in issue as a mature business or maybe as little as 5c eps in a growth environment.

I think what they have and how they run the business will show growth so I expect 3cps to get to maybe 3.6c next year. The big game changer is if they can make an acquisition or three. I think that it will hit $1.00 if you can lock in around $8m EBITDA and around 5c EPS with continuing growth expectations. So maybe a couple of acquisitions with a Rights issue and gearing to fund those and getting to around say 80 million shares in issue. With Interest rates low that is doable and remember as critical mass grows the business generates its own cash flow and growth.

No doubt the business is moving beyond its fledgling status but to get to a much larger business with market cap above or near $100 million the next 24 months is crucial.

They need to do good acquisitions - like they have done in the past. They have to grow the range and my preference - get a consumables business to just provide a base margin and monthly activity to pay the bills.

Once this clicks its much like millionaires saying the first one was the hardest. Momentum keeps the train moving but then you have to watch the maturity set in and the plateau of growth. You cannot expect this growth forever.

So in my opinion I am in this because I can get to my objective a few ways - slower and just wait or it can be helped by expectations and acquisitions feed those.

Happy to wait three years to get to the objectives but it could get there a lot earlier.