pussnboots - some rough numbers - say a new capital structure of 200 million TCI shares (approx - needs clarification) based on 2 for 5 STR - and then take the NPAT figure of $14.2 million for 2007 combined entity in yesterdays announcement (the later one!) then that is 7.1 cps meaning the 'new' TCI at $1.25 price is trading on a pe of about 17.85. Not that cheap - looks like maybe fully priced now?
Anyway - I don't know how they come up with an estimate of only $14.2 million NPAT - I guess there must be substantial integration costs and adjustments expected as if we take the 2 entities seperately then NPAT I would have estimated at nearer $17 million for 2007.
Anyway - looks a good merger but perhaps now getting close to being fully priced based on that $14.2 NPAT figure?
DYOR
STR
service stream ltd
