Today the rights issue will be complete and a dog of 6 months ago with no friends and banks about to pull their funding will be capitalised at $175 million dollars with $40 mill of debt, a cable network worth $200 mill, $130 mill of revenue pa, ebitda of $15 mill, and enough cashflow to pay off its debt within 2 years. Thats all if the company can maintain its current rate of revenue.
BUT....what if it can increase its revenue (it currently only uses 4% of its network capacity), and we can see $50 to $60 mill of ebitda..then the stock could be worth $600 to $800 mill or 20c per share. You may think its a tall order, but with $800 mill of carriage service tenders up for grabs in Q'land, NSW, Victoria state govts and Centrelink, these guys have got as good if not better chance than most of winning good business in the next year.
I reckon they will be annualising $200 mill of revenue by June next year, and then the market will re rate the stock to expect $400 mill of rev pa in 2005...that enough to give them a mkt cap of $600 to 800 mill dollars or 20c per share.....
NOT DIFFICULT REALLY...IF YOU WANT TO MAKE REAL MONEY THAT IS....GET ON THIS TRAIN BEFORE ITS TOO LATE....OH, AND BY THE WAY IF YOU DONT BELIEVE ME, ASK THE OTHER SHAREHOLDERS...THERE WASN'T A SINGLE SHARE SHORTFALL FROM THE RIGHTS ISSUE FOR THE UNDERWRITERER TO TAKE UP...GOT TO TELL YOU SOMETHING!!!!
PWT
powertel limited
