The stock trades at NTA and is about to embark on revenue diversification. The Ping which will fund 4.7m of expenses over next 12 months will along with job keeper and licensing fee waiver help PRT to lock in another 20m cash flow at least irrespective of revenue.
the prize lies on a successful diversification strategy with almost 70m in franking credits. PRT may be able to return to a FF dividend payer in 12-24 months. They are serious about diversification and if they can get the price north of 20c , I would love to see them use a combination of cash, equity and or debt to make a transformational directional shift.
In the interim , PRT continues to be the perfect acquisition for SWM, not only would they pick up the cash and cash flow and net receivables totalling 40m odd , but there would be at least 4-6m in annual cost synergies . Not insignificant given Prts market cap. With seven paying a huge margin for its debt , all cash flow would be very valuable. At present SWM only has equity to use for any TO but if it can offload some assets and reduce net debt and cash and script bid could succeed . Many catalysts for PRT to go higher , cash accumulation , diversification, or takeover
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