"Mauombo - I dont really know where to start. There is a lot of investment needed to take Morrison's further. So the purchaser should then be able to do a straight deal payable in a few weeks. Why do we not have enough to invest in Morrisons ? - we have $5 million free cash and we are generating $1 million Ebitda each month. So what is the great imperative we are investing in? Hopefully not more News media that has earned zip. I am frustrated as I dont see the grand plan."
Boy, tough crowd in tonight.
Looks like they are about to sell one-sixth of the company's earnings for a valuation equal to nine-tenths of the Enterprise Value.
Would that all the companies in which I invest did likewise; I'd love to be frustrated in such a manner.
Viewed another way: how long would it take and how much shareholder capital would need to be invested in order to get Morrisons to be recognised by the market as being a $50m business [*]?
[*] And that $50m valuation is in current money terms and needs to be grossed up for the shareholder capital that needs to get it to that $50m figure.
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SEQ Price at posting:
55.0¢ Sentiment: None Disclosure: Held
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