SP1 0.00% $1.07 southern cross payments ltd

Possible, but unlikely IMO. I think the market is factoring in...

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  1. 479 Posts.
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    Possible, but unlikely IMO.

    I think the market is factoring in the performance shares to some extent already.
    I expect there will be a dip when it actually happens.

    Looking at a rough forward P/E from our March quarterly with 30% QoQ growth.

    Shares -  1 billion   (roughly - assuming Class A, B & C are all achieved)
    Revenue - $ 9.156m  (annual)
    EPS - 0.9156 cents
    P/E -  30   
    share price = 27.5 cents

    For a P/E of 30
    At 20% QoQ growth the share price = 24 cents
    At 50% QoQ growth the share price = 36 cents

    Let's say the following 12 months the growth levels off and we have 10% QoQ.
    P/E drops to 20, no additional shares.
    Revenue - $ 23.181m  (annual)
    EPS - 2.318 cents
    P/E -  20
    share price = 46 cents

    So to me, 16 cents is a good buy for a long term holder.
 
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