lets look at the actual business and the financials first the actual business it seems to be the only internet media model that seems to be working at the moment it would have to be be the foundation of a news media empire so is likely to be taken over at some stage
financially it appears to be way undervalued
I estimate at least $4.40 (based on PE 20) or $3.65 (based on todays PE of 16.6) check out my calculations
recent event - capital raising
no of shares = 288,095,864 no of shares issued to instos = 25,191,494 @ $2.60 new no of shares = 313,287,358
or $65,497,884
assets $361.5 liabilites $194.6 equity $166.9
no of shares = 288,095,864 bookvalue = 56c net profit for half year = $32,472,000 eps for half year = 11.3
after raising
assets $427 m Liabilites $194.6 equity $232.4 no of shares = 313,287,358
book value = 74c net profit for half year = $32,472,000 eps for the half year = 10.3 x2 lets say 20.6c average roe = 36%
a decline of profit of 8.8% due to share dilution
so we have increase in equity of 32%
average roe = about 46% in this environment lets say 30% estimated eps next year = 22c average PE = 30.4 todays PE = 16.6
estimated future pe = 20 value of shares = $4.40
SEK Price at posting:
$3.39 Sentiment: None Disclosure: 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)