With sale of Netlink business, WSY will be left with around...

With sale of Netlink business, WSY will be left with around $2.2m in the kitty on what is a $2.7m market cap at current s.p. bid of 2.3cps.

My calculations suggest Netlink was historically around one third of the business, with the remainder coming from the Webspy side. In addition, it seems that of late Netlink has had less new contract work, so the Webspy contribution has probably been rising and therefore should be worth considerably more than Netlink.

Superficially, the last quarterly shows a return to cash burn ($27k), but the picture is more sound when considering that this qtr was a "clean" quarter and did not contain the income tax credit of Q1. In addition, revenues showed some strength for the qtr, most likely on the back of Webspy roll-outs of new product upgrades.

While WSY might not be the most exciting stock on the ASX for now and needs to be accumulated more patiently than most, I think the value here could see this multi-bag over the next 18 months - my valuation is currently $8m - $9m market cap with potential upside (6.9-7.5cps).