I had a crack at your valuations but after a coupel of Sunday Arvo wines it was a bit beyond me, Il have a look tomorrow. The valuation thread is a good lesson in 1001 ways to value a company.
For the moment I will fal abck on the basics. According to Colin Marland on the forum, he says they are fine tuning the revenue figures but does not see a need to change the $110 million revenue figures for 2003-2005.
SWT for this year will probably have revenue of around $15 million or so? GOing on rvenue of $6 million for 02/03.
So...roughly, we are getting a company 7 or 8 times larger in terms of revenue, and we as SWT shareholders hold 1/3 of it approx. thats got to be good.
I also note that the new CEO says this :
"People Telecom is an unlisted Public company and is conservatively run, No costs capitalised and all Capex is expensed at the maximum rate's allowed"
So am i right in thinking that this implies that People Tel COULD have put some of its expenses as Assets, and by doing so increased its total profit. This would have lookd betetr but as Colin says, its conservatively run. So its encouraging to know there wont be any nasty " write downs" waiting, as is the bombshell announcement of a lot of previously healthy looking co's.
I ran a comparison with IIN on Friday. From memory, seemed to be that IIN had a value on the sharemarket many multiples of People Telecom diluted, yet People Telecom the far larger company. And profit for 2004-2005 same approx. And i would suggest that PEople telecom, with a spread of service, is now the better model over the straight ADSL/VOIP of IIN.
Also note a roadshow starting in a couple of weeks. ( late march, early april). Could be good. Companies usually run roadshows when they have a good case they want to show-off.
