VOC: Technically on the 22nd of Feb they jumped 3% on higher volume and appeared to break out of a trading range when they released half year results with eps up 53%, there was some confusion because in the 2010 HY calculations for eps they used shares outstanding of 25M when they should have used the shares outstanding after they did the restructure of 51M (this can be found in the foot notes of the annual report). Either way they did increase eps by 53% and they increased revenues by 93% which only included 1.5 months of revenues from the acquisition and they hinted that having the full second half of revenues from that data centre will increase revenues even further. I'm guessing that they would have had some once-off integration expenses which reduced the current margin. I estimate the current business should have NPAT of $6.6M-$6.8M for FY11 and on the current shares outstanding of 53M eps of 12.8cents FY11. However they are adding 7M new shares in the capital raising (where there is a good arbitrage) and they will get $14M cash that they can invest at say ROE of 20% which could add in my oppinion an extra 35% eps (once the investment is a full year and mature by FY12 I think) on top of any original company eps growth. I currently value VOC at $2.40 to $3.20 subject to increases/decreases in the fundamentals.
VOC Price at posting:
$2.33 Sentiment: Hold Disclosure: Held
