Originally posted by burner_7
Incentiapay is shaping up to be a great value purchase IMO as they are now trading around cash backing (including recent deferred sales cash). The strong cash holding, no debt, small market cap and strong revenue, and minimal EV presents a very compelling investment opportunity.
Cash balance based of full sale prices and EOFY 2018 cash balance:
Cash balance EOFY2018 $11,100,000
Batercard sale $5,000,000
Gruden gov sale $1,650,000
Total expected cash $17,750,000
INP shares on issue = 228,193,274
Incentiapay @ 8c per share: M/C approx. = $18,250,000
Total cash $17,750,000
Current Enterprise Value ~$500,000
The company has stated that it will be cash flow positive for 2019 so i believe there is no real need to hold this level of cash which leads me to believe a special dividend and/or a share buyback will be on the cards in the near future.
The market value of current businesses still held by incentiapay:
Entertainment pub. $26,000,000 (purchas price 1/7/2017, $23.5M cash & $2.5M of shares)
Gruden $8,000,000 (purchase price based on 27,700,000 @ $0.28 per share & $250,000 cash)
Sale of gruden gov. -$1,650,000
Asset value $32,350,000 (based on recent purchase prices)
Quick basic intrinsic value of current INP would be:
Cash = $17,750,000
Business assets value = $32,350,000
Total value = $50,100,000
Value per share = 22 cents per share
The above does not take into account alipay or any streamlining and growth in businesses since purchase but outlines the extent that Incentiapay is currently undervalued. This coupled with new managment, the expectation of an already EBITA positive business with revenues around $100,000,000 presents an exciting opportunity IMHO.
Good luck all!
This is why I recently made a significant purchases over recent time (started about a month ago) with my last purchase being today (possibly more in the future) - be nice is they make a special dividend payment but I would rather a steady share price and steady dividends coming in for the future.
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