That bullish? I was working conservatively on $1m EBITDA this year, but that was prior to this announcement. I believe that EBITDA and NPAT have the potential to really ramp up down the line when the revenue growth slows and CGS focuses on cost control to squeeze margins. For now I am happy for CGS to spend whatever they need if revenue is going to keep growing like it is.
What do you have revenue figures at given the updated numbers? I've been happy to conservatively work on $20m revenue, but given it is already at $17m as at today that will have to be updated. $25m may now be a conservative amount...
$2m EBITDA puts the EV/EBITDA around 8 to 9 times which is ridiculous given the half on half growth which appears to have continued into this half.
Why have I not invested in this stock yet? From the stocks I keep on my watchlist only one or two offer the value and prospects it does at these levels.
CGS Price at posting:
22.0¢ Sentiment: Buy Disclosure: Not Held
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