Ann: Establishment of Pro-hygiene product line, page-121

Totally agree just been watching this for the last week - feels like a last wring out of the sellers (have to be patient with these ones sometimes).

Its a pretty simple equation here in my mind:

* Revenue Growth - tick
* Profit & Cash Flow Growth - unknown (but they appear to be working @ 20% gross margins so should be growing)
* Balance Sheet - there is a bit of debt (which should get worked through with cash flow growth) but that is the risk point here in my mind
* Directors Aligned - big tick
* Valuation - $7 mill (if they are looking at perhaps $2 mill NPAT - fixed expenses are tiny) on perhaps $14-16 mill sales a year - well you do the calcs on a PE of 3
* Future prospects - now appear to be aligning well with online sales channels (Amazon, Ebay)...right market, right channels regardless of COVID.
* COVID-19 - initiatives...seems a bit silly at first glance...BUT...to me it shows intent to make of this situation what they can and make hay while the sun shine. and shows people wanting to drive a business forward...lots of others are going bust...they are trying to boost sales where they can (actually quite smart). Its a darn sight more initiative than 90% of the companies at this end of town.

All said and done everything hinges on execution and profit statements but risk reward seems pretty compelling to me here. Agree if they keep showing $$ progress should go up from here. Compare this to the 100's of mining companies with the same MCap but $1 milion in the bank and a few holes in South America or Africa...

DYOR. I could be very wrong...that's the nature of these things..its a risk and this is that end of town.