I agree with you trythree. I agree that re-investments should...

I agree with you trythree. I agree that re-investments should not affect NPAT, but I'm somehow suspicious it might. There is actually nothing to stir any suspicion that a significant proportion could be expensed on the P&L. But like many I can't seem to help myself from being influenced by how undervalued the stock is and therefore am questioning any possible negatives.

I am looking for worst cases.

If this was priced at 30c+. I would likely be saying that with almost $30m in cash (after a year of heavy investment) and very little debt, plus a record year for operating cash flows I hope SBB is set to up their 25% of NPAT divi and pay out a good 2c. I expect that with $15-20m NPAT and a 2c dividend we can easily push to 40c etc and still be trading at low P/E for such a fast growing company.

The SP is in my head and perhaps making me irrationally fearsome. Not fearsome enough not to buy of course, but fearsome enough not to put more than 1/5th of my portfolio into what could be the best investment I've seen.

If you take risk out of the equation (i.e. the company has traded on the ASX for years, paying dividends each year) then this would be on its way to being a 50c stock no problem.