Agree with your sentiment, but I think you have overcooked the numbers a little, but not too much.
Imdex has stated it expects revenue growth of 45% and margins to improve. 45% growth of 06 revenue of $67m equals $97m, marging sof at least 15% equals $14.6m EBIT. I get debt of about $15m but this should get paid down pretty quickly - say less around $1m interest and tax equals NPAT around $9.5m. 160 million shares on issue (convertible note coversion is inevitable) equals EPS of 6 cents so trading on a forecast PE of around 11x. I think there is probably some upside in the earnings and the PE could drift up as well, but an 85 cent price target over 6-12 months is more realistic than $1.20
Cheers Monty
IMD Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
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