Further to my concerns about profitability above. I noticed in the shareholder presentation there was reference to performance rights issues to directors if EBITDA of $5m is realised within 5 years of listing.
Lets be overly cautious and say NPAT at that time would be $3m (tax of $1.5m, depn, interest $500k). There are currently 580418213 shares on issue, which would result in EPS of $0.005 per share, which based on the current SP yields a PE ratio of over 75.
Now, given the cash burn there is surely going to be multiple CRs between now and a $5m EBITDA, so the shares on issue would probably double, halving the EPS.
Alarm bells? I'd love to hear from someone that attended the AGM to find out whether directors talked about profit because from all the investor presentations I can barely see any reference to profit.
Does the value of the share registry lie in the technology and possibility of a takeover?
GLTA DYOR IMO
XF1 Price at posting:
43.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)