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5.4¢ ama group limited

Thanks for that. If they can run negative WC, or something close...

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11/04/24

12:55

Post #: 73295465
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Originally posted by Chevelle67: ↑

The brokerage firm, Canaccord Genuity, has been AMA's investment banker and so yes, they've been paid fees and may be presumed to be biased, but Bell Potter also rates AMA a buy with $0.13 price target and I don't think Bell Potter is getting banking fees from AMA.

On your point about working capital, one of the nice things about this kind of business is that it normally runs with negative working capital (current liabilities exceed current assets), which has been the case for AMA and its larger, much better run peer in North America, Boyd Group.

But still, as the business grows increases in working capital should be a drain on free cash flow, and this model shows a $16 mil. increase during 2024 but then almost no change in 2025 and 2026, which may be overly optimistic as you point out. I'm not sure what the right number should be, but I think the EBITDA margin should improve much faster than this model expects, which should more than offset a more "realistic" need for working capital.

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Thanks for that. If they can run negative WC, or something close to it then this is a whole different business, imo. It's a business I keep an eye on but really too many moving parts for me.

AMA Price at posting: 5.1¢ Sentiment: None Disclosure: Not Held
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(20min delay)
Last 5.4¢		Change 0.002(3.85%)		Mkt cap ! $97.54M

Open	High	Low	Value	Volume
5.3¢	5.4¢	5.3¢	$56.82K	1.054M

Buyers (Bids)

No.	Vol.	Price($)
2	153991	5.3¢

Sellers (Offers)

Price($)	Vol.	No.
5.4¢	38541	1

View Market Depth

No.	Vol.	Price($)
2	153991	0.053
6	357903	0.052
6	177942	0.051
10	885159	0.050
6	428341	0.049

Price($)	Vol.	No.
0.054	38541	1
0.055	62040	1
0.057	175456	1
0.063	55136	2
0.065	238849	4

Last trade - 16.10pm 08/05/2024 (20 minute delay)


Last 5.4¢			Change 0.002 ( 1.89 %)
Open	High		Low	Volume
5.3¢	5.4¢		5.3¢	338381
Last updated 15.59pm 08/05/2024 ?

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