what value ntc ?

Hi all,

Just thinking out loud tonight and musing over the comparative prices of SDI (formerly Southern Dental Labs) and NTC (Netcomm). Both of which I have followed for what seems like ages (along with the stuck in the mud CST as well !!)

SDI is trading around $10.50
NTC is trading at $0.30

SDI forecast eps approx 30 cps
NTC forecast eps approx 3 cps

SDI dividend will probably be 10 cps for the year
NTC dividend will probably be 1 - 1.5 cps for the year.

Neither have much / any debt.

Both companies operate in growing markets and are expanding their own market shares at very appreciable rates with EPS growth of 40 - 50% yoy. NTC is surely set to ride the projected five fold growth in the Australian broadband internet market over the next 3-5 years.

So, if the market was pricing NTC on the same basis as SDI the NTC share price would be north of $1.00, not $0.30, wouldn't it ?.

The directors of NTC seem to agree that their share price is undervalued (if we can believe the motives of their recent liquidity improving announcement). Positive announcements have been coming out regularly for 12 months now.

Then again, perhaps SDI is simply way to over-bought - but surely not by 300% !

Any thoughts out there in snooze land ?


Jess

(Yes, I own a sizable number of NTC and I'm looking to re-buy SDI one day).