This is one of those companies that is pretty boring with solid fundamentals. As a holder I even feel myself wanting to sell now to put money in more exciting plays. Strategically this announcement is pretty interesting though. The departing CEO has found a higher value task for himself than being CEO, (creating new businesses) which hopefully is a growth propeller in the future. As soon as we get this vaccine rolled out and international revenue growth kicks off again, this should re-rate to A$1.33 per share (240m market cap or 8x EBITDA) at the very least.
At the current price of $0.90, an implied dividend of 3% this looks like a free option to park cash while waiting for international travel to kick off again.
The other thing I look at is the liquidity of the stock. Right now the stock is pretty illiquid making it time consuming for pension funds to accumulate and Interactive Brokers doesn't allow any margin loan. If the stock does gain some momentum and we see higher liquidity, increased margin loan allowances could further provide a boost.
This has all the right things going for it, seems to be just a matter of timing.
MAD Price at posting:
89.5¢ Sentiment: Buy Disclosure: Held
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