In a simple analysis I look at it this way.. Say you write of the total $45m as an extreme case..
Current Mcap is around $38m. Forget the $45m from Wartsila because you want to remove all risk from your analysis.. Here is a company worth $38m Mcap with a 2H FY20 order book of approx. $90m with around 7% ebita forecast so $6.3m Ebita. Here is a company with $170m order book already in FY21 @ 7% ebita is a further $11.9m. IF they wrote of $45m from Wartsila and had to raise say $20m they would have a Mcap of around $58m with $20m Cash and $260m confirmed order book @ forecast 7% ebita. that's not too shabby right? Now, potentially add back in the $45m from Wartsila and you have a company with around $40m cash, $260m on the order book @7% ebita and sitting at a Mcap currently of around $38 million...
PGX Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
