This June quarter has been spruiked in company reports to deliver upbeat results.
here's the operative quote from the last quarterly: 'Strong revenue growth in Q1 2024 (+76%) consumed significant working capital and will drive cash receipts in Q2.'
IME forecasted revenue in 2024 in a range $24m-$27m, + 22%-37% on 2023.
and underlying EBITDA this year of $1.5m-$3.5m, versus $0.4m actual in 2023.
strikes me that the company either now has or is approaching critical mass, and this is being revealed in lots of activity and some pretty decent metrics.
this will hopefully come out more fully in the June quarterly, or if this doesn't happen now, it will eventuate later this year.
the stock is illiquid on ASX, so sales of small parcels of shares can move the price more than normal. Ssomeone needing lunch money, or who lost patience and wanted to quit their position likely drove the current SP to or near all time lows.
as with many illiquid listings, there is a fundamental disconnect between the SP and the value of the business. This is only rectified when investors have a reason to be interested. IME hasn't yet provided much grounds for attention.
@rahul123 above correctly identified some country risk to IME operations.
oh, one last thing. Comparisons with PME do IME a great dis-service, chiefly because the former is well established in the most hugely profitable healthcare market the world has ever known - the US.
PME turns roughly a 50% net profit on all sales. IME's growth trajectory from a business mostly located in LATAM countries nears break even..
IME Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
