Certainly lots to discuss. Despite the weak price action it was...

Certainly lots to discuss. Despite the weak price action it was a strong quarterly. At a minimum I’m now expecting over $4m EBITDA - probably $4.5-$5m. Simply annualising the run rate does not take into account further Zoleo growth (yes, growth is weaker but Europe might start to see some adds plus I think ANZ will keep growing), plus all the new product that has been launched will have a full 6 months to sell vs the prior half where they were released towards the back end. These are higher margin units too!

The investment in working capital should also unwind at the same time that capex tapers off. This becomes a double benefit for cashflow. The business has $3m in cash. Back of the envelope, I’m expecting this to more than double. We should exit with cash (excluding any potential m&a) of $6-$7m.

So roughly I’m getting $4.5m-$5m EBITDA and $6-$7m cash. At 22c the market cap is $19m. If nothing changes that implies an EV of let’s say $13m generating EBITDA of $4.5-$5m or ~3x EV/EBITDA - scandalous.

Realistically it should be around a 8-9x EV/EBITDA multiple which is still fairly conservative but warranted given the lower market cap. Plug that into your models and work out the share price!

I know the heavy selling sends a bad signal but maybe someone just wants out? I think the investment case is compelling at these levels and I have been a heavy buyer over the last two days.

Sometimes you need to look through the noise and look ahead - certainly easier said than done. At sub $20m market cap and a VERY low chance of default the downside at these levels IMO is minimal while the upside is significant. How many $20m market cap companies with increasing cash and $4-5m EBITDA are there on the ASX. I’ll give you a hint - just BCC!

Oh yeah, PAC broker upgrade coming which has been flagged early by the analyst. His last 12 month price target was 37c btw.