Isentric, with tax concessions and the various other benefits they get are likely to earn an NPAT in FY16 exceeding AU$1.5m I would hazard.
The mobile content space is an intensely competitive one, but if I am inclined to have a small exposure to the sector, you could do worse than a founder led operation trading at less than 10x NPAT despite a big hit to one of their most important revenue streams.
It's not the positions that leaves me resting easiest at night, but on a risk/reward basis, it is better than many alternatives in the sector.
I think a very small portfolio weighting to a business such as Isentric can be ok, but one certainly shouldn't bet the house on such a business - Eternalgrowth
ICU Price at posting:
9.6¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)