Problem is their cash flow I think froggy. It is not instilling...

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Pierre83

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31/03/20

22:46

Post #: 43807853
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Originally posted by Froggy181: ↑

I know its bad at the moment, hey its a crisis, BUT
How can this mob have a MC of 8ML?
I know we say we have 7 years recurring revenue, which we have be told that we really dont by some on here, but this thing is now 1/5th of it price when they consolidated, and has tripled the amount of SME's that they had.
Agree nobody is in them due to covid, Ie not many chinese in surfers at the moment.
Still think we may get a positive shock in the 4C. They announced in last 4C that income will come in 2nd half from conversions in December quarter as they were delayed. I am probably wrong, have been alot, but still reckon we are way under valued with the income we have. Agree expenses rose too quickly, chasing growth but this income should be coming in the highest usage quarter. Covid will probably mean more usage, not less.
I am probably talking to myself as everyone has left but seriously, a company with run rate probably $60ml revenue, and increasing with MC of $8M - Pleazzze

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Problem is their cash flow I think froggy. It is not instilling a lot of confident for the equity market. The business model is simple and I like it but they should be showing good cash flows by now.

I agree the 4c Should be better but I am starting to think is that enough? What happens during the off season months then again?
I think if they were serious they would immediately put all Exco salaries on hold for 6 months and a 50% reduction on sale staff salaries. Pay off some debt and retain some earnings. Or just sell it for $25m and move on.
At the moment they have not done a good job of updating what we have got back for the $17m debt draw down.

LPE Price at posting: 17.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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