interesting valuation, page-2

Hi Neptune, If you go back to January you will see that there were a number of discussions over the potential tax liability of CSE on its SYR shares. In last years annual report CSE revalued SYR shares to $2.33 and recognised the tax payable on that gain. Due to accrued losses there would be no tax payable. On this basis with SYR currently at $1.74 there is still no tax potentially payable on any sale.
So, this leads to the following calculation...

106.845m shares on issue - no oppies so no further dilution.

Cash as of 31 Mar 13 = $2.23m (with estimate of $200k outflow for the current quarter to 30 June)

SYR shares held = 11 million

Value = 11m x $1.74 = $19.14m

Tax already accounted for in 2012 for SYR valuation at $25.63m (see page 45 of AR). Therefore no additional tax to be recognised.
So profit net of tax is $19.14m. Add in cash estimate 30 June $2.0m = $21.14m

$21.14m/106.845 = 19.8 cents per share.

With CSE last trade at 12.5 cents this is a 58% undervaluation.