I'll take a punt...
A new contract, servicing a major local super fund, will be announced within the next 3-5 weeks...perhaps kicking off what should be a successful period of similar announcements over the latter part of this year.
Gpen are already expected to reach "break-even" this year...so such contracts, in my opinion, would provide immediate profits for Gpen (read MRY)...and should be very well received by the market.
No need to rush in to buy shares however, plenty of time to slowly gain a position in my opinion...which is sort of what I am currently doing.
We need to remember that at some point, perhaps once the price has risen to more reasonable levels, MRY will announce exactly how they intend to pay for Gpen...more than likely, through a combination of cash and script and no doubt with CHF support.
Different industries I know, but I see Gpen's situation as being not unlike MYOB's when the GST was first bought in...a company now valued at over $400m and still with only 2c asset backing per share.
It's certainly an interesting period ahead.
Even if Gpen only manage to win over a small fraction of their possible market, they will be earning serious money within a relatively short period, say 2-3 years.
Earnings per share (eps) of just 1c ($10m profit to the company) would easily justify a share price over 10c...this could eventuate from as little as just 3 mid/large sized clients?
Not a bad return in my books...just need to be a little patient and hope for a little luck.
Cheers!
Add to My Watchlist
What is My Watchlist?