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Ann: Daily share buy-back notice - Appendix 3E, page-10

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thunderhead1

11,732 Posts.

392

11/03/20

10:07

Post #: 43420594
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Originally posted by madamswer ↑

In terms of the best mechanism by which to return capital (dividends or buybacks), given the low capital intensity of the business and with a capital return from PEXA pending, they could afford to do both.

I have gone hard on this investment.
Conviction level very high due to deep under-valuation.

By my reckoning, if a truer value for LNK's stake in PEXA is stripped out - say $1.0bn, instead of the current ~$700m carrying value - then I'm buying the $360m to $380m of EBITDA that is represented by all the other businesses for less than 4x EV/EBITDA.

Viewed from the opposite direction: if I apply a modest 8x EV/EBITDA multiple to the other businesses, then the PEXA stake is implicitly being valued at a negative $500m (!!)

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How hard have you gone in @madamswer? You have been accumulating at various points recently from my recollection.

LNK is currently just over 4% of my ASX portfolio. Of course, that number is skewed by the steep fall post reporting in Feb.

LNK Price at posting: $4.23 Sentiment: Buy Disclosure: Held
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0 Great analysis

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