upward creep, page-4

I suspect I am being a tad optimistic, so please feel free to slap me with reality.

They are aiming for $100m "book" for TEF. This will be funded with Westpac's full support. TEF is already at $35m. A massively underserviced market with GE pulling out, and Capital Finance being severely capital constrained, and none of the big banks interested at all.

Cashfirst is also growing. And NCML is winning contracts, and not quite the dud as Mr Market appears to think.

I will not be surprised if these 3 divisions match Rentals in 3 years time, assuming no growth in Rentals.

Ignoring the new Rent Drive Buy venture, we may see earnings doubling in 3 years time. Doubling of earnings within 5 years is quite high probability, unless a huge recession sweeps in.

Given an undemanding PE of 10, you can do the sums easily.

So I am not quite sure that $2.50 fair value will do ATM.

This is the reason why I keep having the impression of "coiled springs".

Anyone care to comment?