The past year has been a turnaround operation by management. The business is now running smoothly and efficiently and the shareholder loan that made this possible is about to be fully repaid. I personally would hesitate to put a value on the business until we know more about management’s strategy for the future. Will they look to grow the business organically or through acquisitions? Might they consider diversification (although I think that unlikely in view of them selling off the perfumes business)? Or will they regard the business as having reached an appropriate size and use surplus capital to pay generous dividends and buy back shares? Management has yet to say anything about its future strategy, given its focus to date on restoring profitability. Until we are better informed, I’ll just sit back and watch the company accumulate profits, and await news on its future plans.
ATP Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
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