Asymmetrical risk... no downside.. only upside, page-7

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El Jefe

6,066 Posts.

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11/12/18

13:17

Post #: 36818959
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Originally posted by thebigbadbear ↑

Ok i thought i would do some calculations to highlight to those that dont understand the potential here and how there is limited downside to this companyCurrently around 70m shares on issue (inc partly paid)

Current market cap around $63m
Current Net assets (cash + investments) around $40m
Net asset backing of about 57c a share

Now LCA are seeking approval to raise up to 70m GBP when listing on AIM that is about $125m AUD

Ok so lets start with

scenario 1
LCA raises $50m AUD equivalent at around $1 per share equivalent when listing on AIM
70m shares on issue + 50m new shares = 120m shares on issue
$40m in net assets + $50m = $90m in net assets
$90m net assets / 120m shares on issue = 75c per share net assets if raising $50m @ $1

scenario 2
LCA raises $75m AUD equivalent at around $1 per share equivalent when listing on AIM
70m shares on issue + 75m new shares = 145m shares on issue
$40m in net assets + $75m = $115m in net assets
$115m net assets / 145m shares on issue = 79c per share net assets if raising $75m @ $1

scenario 3
LCA raises $100m AUD equivalent at around $1 per share equivalent when listing on AIM
70m shares on issue + 100m new shares = 170m shares on issue
$40m in net assets + $100m = $140m in net assets
$140m net assets / 170m shares on issue = 82c per share net assets if raising $100m @ $1

scenario 4
LCA raises $125m AUD equivalent at around $1 per share equivalent when listing on AIM
70m shares on issue + 125m new shares = 195m shares on issue
$40m in net assets + $125m = $165m in net assets
$165m net assets /195m shares on issue = 85c per share net assets if raising $125m @ $1

The above calculations are conservative do not include any new case settlements that will add to LCAs Net Asset backing.......
Asymmetrical risk... no downside.. only upside

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Why are you so confident in a $1 raise?
That’s the main factor in your assumptions and it’s a big variable......

When is final day of trading for LCA on ASX?

LCA Price at posting: 85.0¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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