Great buying opportunity around these levels, anyone who is selling is mad. STL buying Indue on a 3x earnings multiple, which should add $1.7 million in EBITDA each year - a number that's growing. Major investors on board and large connections looking at this play. Extremely serious money piling into this stock. Emerchants (EML) valued at $387 market cap...$1.58 per share. I owned them at 10 cents and sold at 20 when they turned free cash flow positive. It was a stupid mistake. told myself, if I saw anything else similar, I'd never make that mistake again. STL would be worth more than 50 cents at that market cap. And there's no reason to say it couldn't be worth more. This stock is going places.
Peer comparison
Stargroup has a market cap of circa $20 million and is forecast to produce FY17 revenue of $10 million and EBITDA of $2 million, which positions it attractively compared with its peers:
- Directcash Payments Inc (TSECI) - $520 million market cap, $270 million revenue, $69 million EBITDA;
- Tyro Payments Ltd (unlisted) – Recently valued at $450 million, $95 million revenue, $0.8 million EBITDA;
- Mint Payments Ltd (ASX:MNW) - $42 million market cap, $5 million revenue, -$5.5 million EBITDA; and
- Transaction Solution International Ltd (ASX:TSN) - $40 million market cap, $0.12 million revenue, -$0.99 million EBITDA.
STL Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
CI) - $520 million market cap, $270 million revenue, $69 million EBITDA;
