Read the Fool write up this morning and decided to have a quick look.
FH results seem decent for a micro cap - NPAT $640,000.
1,143 contracted schools and early learning centers.
Australia currently has around 9,393 schools. Most likely more if you add learning centers.
Say yearly NPAT is $1,280,000 as it stands ($640,000 x2 HY) off 1,143 schools.
If the company ended up contracting 50% of Australian schools (4,696) and working back off this NPAT base - Estimated profit could be in the region of $5,120,000 per year.
Obviously a very ruff estimate which doesn't not including many elements that need to be considered.
It's all about converting schools, getting transparent results and up-selling their premium offerings.
Marvin_Mindreader, your 7-8x EBITDA is a little low. With this essentially being a tech company, and the education sector trading around 18.2, i'd say it would be much higher.
I sold out of G8 Education just before Christmas. I'd held the shares for a number of years.
Companies playing in the education space while not sexy, can definitely be very rewarding.
MGM is not an investment for me yet. But i'll be watching closely for any mentions of expansion into Asia.
Good luck all.
MWR Price at posting:
$1.29 Sentiment: None Disclosure: Not Held
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