lollies - sorry if ive missed it but curious to see your NTA...

lollies - sorry if ive missed it but curious to see your NTA calc?

mine is (based on Dec-22 accounts):
Cash $24m
Accounts receivable $62m
Inventory $47m
PPE $227m (of which $150m is real estate)
Gross tangible assets = $360m
less:
Accounts payable $43m
Borrowings $104m (ST and LT)
Tax liabilities $17m - and DTA is arguably not a hard liability here
Net tangible assets is thus $196m, which would imply NTA of $0.69/sh - a 20c discount woukd get you to 55 cents

vs todays market cap of A$245m

i think its a very compelling risk-reward at these levels - a really quality industrial business with a strong, dedicated CEO / Founder (remembering he bought $500k on-market at $1.50 in September, as did a director who bought $100k worth).

The implied value of the business, after accounting for NTA, is around $0.15. So at $0.84, you pay 15 cents for a business that is generating 7 cents per share of EPS (based on the $10m of NPAT in 1H 23).

Essentially paying 2x PE for the business. i think that is pretty good value. the supply chain and cost pressures will normalise quickly and we will re-rate nicely back into the 1s. just need a few quarters of good performance.