The real test here wont be in the revenue growth, because they will have a reported increase, due to the acquisition. It will be in the margin growth. In cyber Security, the legacy business is running at a 3% EBITDA margin. With the acquisition and synergies it is forecast to go to a 9% margin. Nothing really exciting, so it needs more scale. That means it will need to do more acquisitions. The recent acquisition has almost doubled the shares on issue. If my calcs are correct, there will be close to 1.4B shares on issue.
The acquisition was for $34M, when the market cap was $51. Now, less than a month later, the market cap is under $40M. When the proposed 600M shares are issued, as per the EGM, will the price hold up?
Every half the needle moves but not always in the right direction.
This will need to be taken out within the next 12 months to euthanize those that have made the crap decisions.
The real test here wont be in the revenue growth, because they...
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Last
4.5¢ |
Change
-0.004(8.16%) |
Mkt cap ! $61.49M | |||
| Open | High | Low | Value | Volume |
| 4.9¢ | 4.9¢ | 4.5¢ | $49.93K | 1.057M |
Buyers (Bids)
| No. | Vol. | Price($) |
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| 2 | 47600 | 4.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
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| 4.7¢ | 150000 | 1 |
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| Last trade - 15.54pm 02/05/2024 (20 minute delay) ? |
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4.3¢ |
Change
-0.004 ( 12.2 %) |
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| Open | High | Low | Volume | ||
| 4.8¢ | 4.8¢ | 4.3¢ | 311131 | ||
| Last updated 15.58pm 02/05/2024 ? | |||||
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