SPL looks very interesting at these levels, volume through on Friday appears to be the end of a larger selling line.
The Vivagel/SSL collaboration appears to be going very well and these revenues to SPL have a very low probability discount weighting against them.
Durex is a key revenue stream for SSL (45%).
SSL generated EBIT of approx GBP68.1m in 2008 has 100m of net debt, 190.1m shares on issue and a current share price of 4.45.
Therefore it trades on an EV/EBIT of 13.9x 2008
SSL earnings are growing at approx 12% CAGR so EBIT in 2011 should be approx GBP 95.7m and hence its 2011 EV/EBIT is 9.9x
Assuming that SSL has to pay SPL royalties of say A$10m-A$15m in 2011
What is the value of this royalty stream to SSL?
Answer = A$100 to A$150m.
Halve these amounts to ensure that it is an EPS accretion gobsmacker to SSL and = $0.28c to $0.56c
Throw the rest in for free
cheers
a hidden gem that is about to run
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Last
9.7¢ |
Change
0.003(3.19%) |
Mkt cap ! $40.55M | |||
| Open | High | Low | Value | Volume |
| 9.5¢ | 10.0¢ | 9.5¢ | $190.9K | 1.972M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 830101 | 9.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 10.0¢ | 89991 | 3 |
View Market Depth
| Last trade - 16.10pm 01/11/2024 (20 minute delay) ? |
| SPL (ASX) Chart |