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I some what agree, management has a lot of there own in this, so...

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loaner007

767 Posts.

80

04/05/16

20:09

Post #: 17678639
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Originally posted by treehugger ↑

An interesting development with OLV today. I know I called for changes but getting rid of the CFO wasn’t what I was hoping for (or maybe he resigned).
Let’s look at the Appendix 4C. Revenue for the quarter was $978K. Revenue for the previous 2 quarters was $2,031K. Therefore the average revenue for each of the first 2 quarters was $1,015K. So the 3^rd quarter revenue is actually a drop in revenue from the first 2 quarters. This isn’t really a revenue growth story is it? Revenue is declining. The revenue growth story has just been destroyed by the facts. Digitalinvestor you seem happy with the drop in revenue as a good result?
If this company was underpriced then one of the big guys would come along and make a bid for them. But they haven’t. Why? If you look at the OLV balance sheet from half year the net assets are approx. $2M and the OLV technology is valued at under $2M. So the value of the business if you look at it from an NAV perspective is circa $2M and if you look at it from a liquidated value it would be much less. So even at the current market cap of approx. $15M it’s still far too expensive. Believe me the big boys would be aware of OLV and if they thought their technology was valuable they would take it out. But they haven’t. So either they think the technology isn’t any good or it’s too expensive. Whatever the answer is it isn’t positive for OLV shareholders. The other side of the half year accounts we saw a capital raising that wasn’t well supported however the balance sheet obviously improved after the cash came in. However shareholders were diluted.
However you value OLV it doesn’t add up to nearly what the current market cap is. P/E doesn’t work as it loses money, NAV is only circa $2M, DCF would show a negative value…
OLV has some great clients and what appear to be good long term contracts. But even with all these clients and contracts it makes limited revenue and loses money. It will be interesting to see the response when their next capital raising comes around. And what will the price of the next one will be?
My opinion is less focus on the presentations and more focus on getting a viable business. Bring more commercial acumen into the business and get the structure of the board right.

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I some what agree, management has a lot of there own in this, so takeover would not be easy even at current prices, not sure about your figures but l have never been a great reader of reports as smarter people than me can make them look very good, this company simply needs steady results and income, simple as that IMHO

OLV Price at posting: 7.7¢ Sentiment: None Disclosure: Held
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I some what agree, management has a lot of there own in this, so...

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