The most wonderful time of the year; Contrarian Investment With ST Catalyst

Andy Williams is famous for his song "It's the most wonderful time of the year". He passed away over a decade ago - God rest his soul - but I wish he were here to witness the sum of the parts valuation for Enero (EGG) as I think he would be bellowing out a special version of his song for us.

I am absolutely astonished at the value presented in EGG's market valuation today. The stock has been decimated over the last 24 months and I count myself lucky not to have bought the stock at $3.00-$3.50 when it looked to be in a growth phase. The company didn't answer my calls and I was unable to build a relationship with them at the time..

Guys the opportunity here today is very straightforward - here is my assessment of the value at present..

EGG
Share price (today): Aud $1.12
Market cap (today): $102m
Net Cash (Oct 2024): ~$44m
Enterprise Value (Oct 24): $58m
OB Media Valuation: $56m (62c/share)
Enterprise Value (Ex-51% Interest in OB Media): ~$2m

The company is extremely confident the OB sale will be done in Q2 FY25 (5 weeks left) and EGG should realise $50m-$56m (55-62c/share) on the sale for its controlling stake in OB. You can look at it a few ways but the way I see it, one buys the THC agency businesses for nothing today, literally $0. On the news of the sale EGG's EV (encompassing the remaining agency businesses) will be $0m.

This is one of those unimaginable investment opportunities that arises when a stock is sold off due to a lack of momentum behind it, or the businesses aren't growing as much as investors would like. As far as I'm concerned, this is a belter opportunity and I have shifted 40% of my money into EGG over the past 4 weeks and now have an average entry price of $1.13.

All I want is an OB sale to the tune of 50c/share cash to EGG which will spike EGG's market valuation higher rapidly and I will be singing Andy Williams' Christmas carol all summer long...

Very keen for the next few weeks, what a short-term trade this will turn out to be for new investors buying EGG today!