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3.37%

8.6¢ prestal holdings limited

Hi Schmucky. Thanks for your thoughts. I just have a question -...

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Mattao

71 Posts.

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22/05/24

16:13

Post #: 73958450
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Originally posted by Schmucky: ↑

In business, one of the hardest decisions is to sell and hand back cash to shareholders. More often than not, most companies raise money, spend a heap and sell for a pittance and start over again.

Credit should be given where it is due. They have sold the business and returned cash as they said they would.

If they stick to their plan of returning 7c on 1 July, it shows management can be trusted to do what they say. Post dividend shares should trade at ~12c. With 10m cash in the bank, a HwB with positive EBIT in this challenging environment. It has huge upside and operating leverage when conditions improve. Post dividend the EV for HwB is 10m (half what they paid).

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Hi Schmucky. Thanks for your thoughts. I just have a question - given the company will have $10m in the bank and a business worth, according to the directors, $5.7 million, why do you think the business will trade at 12 cents?

($10m + $5.7m) / 170.5million shares = 9.2 cents.

Given the company's warnings about "weaker sales" and "economic headwinds", I am not as upbeat as you and wondered if I was missing something?

PTL Price at posting: 18.0¢ Sentiment: Sell Disclosure: Not Held
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(20min delay)
Last 8.6¢		Change -0.003(3.37%)		Mkt cap ! $14.65M

Open	High	Low	Value	Volume
9.5¢	9.6¢	8.6¢	$59.9K	665.4K

Buyers (Bids)

No.	Vol.	Price($)
3	46769	8.5¢

Sellers (Offers)

Price($)	Vol.	No.
9.0¢	10271	1

View Market Depth

No.	Vol.	Price($)
3	46769	0.085
1	36595	0.082
2	100350	0.080
1	2500	0.078
1	7792	0.077

Price($)	Vol.	No.
0.090	10271	1
0.095	2280	1
0.096	126786	2
0.098	634791	1
0.100	788991	2

Last trade - 15.54pm 08/08/2024 (20 minute delay)

PTL (ASX) Chart