Ann: Intiger Commences Pilot and Partnership Program, page-1449

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growler1969

7,323 Posts.

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13/12/16

07:57

Post #: 21288596
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Originally posted by secold ↑

Don't you feel that you're just arbitairly halving until it hits a point where the price is what you've pre-decided it should be?

80 times PE seems a bit crazy is all..

I think the way to value it is take the 40 mill in profit, and multiply it by the probability of back-office excel work being outsourced to indian call Centres... (maybe 35-45%... i expect a lot of incompetence, I mean programmers tried outsourcing their whole profession to India a decade ago, and the results were disastrously bad code costing people millions in re-writes and auditing).

Works out to be about 14 Million adjusted for risk of failure, spread over 3 years. 4.6 million NPAT a year...
(40million * 0.35 chance of success)

Discounting the cash flow backwards we get a market cap of around 100 Million, which means the market currently thinks the chance is LESS than 35% they're going to make it.

And let's be serious about what they're actually trying to do..

40Million in profit, with a margin of maybe 10-15%.. means 266 Million in revenue. Do we really think this kind of money is going to come the way of a company who's primary sales point... is selling indian back-office desk jockeys to corporations?

I don't mean to FUD, just that most penny stocks are full of sheet. On simple probability it's likely this one is as well in the longer term.
In the short term though, by all mean ride the bubble up to 20 cent, or 30 cent or whatever it inflates to before the smart money pulls the rug out from underneath.

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"... back-office excel work being outsourced to indian call Centres..."

There's some nice research right there.

As a hint, there is a big difference between a call centre and a BPO and a KPO.

For your next assignment please research: Mphasis, Minacs, WNS, Infosys, Wipro, TCS. Just some of those bigger "Indian back-office desk jockey" shops.

IAM Price at posting: 8.0¢ Sentiment: Buy Disclosure: Held
15 Upvote

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(20min delay)
Last 2.1¢		Change 0.000(0.00%)		Mkt cap ! $11.98M

Open	High	Low	Value	Volume
2.1¢	2.1¢	2.1¢	$3.15K	150K

Buyers (Bids)

No.	Vol.	Price($)
2	290347	2.0¢

Sellers (Offers)

Price($)	Vol.	No.
2.1¢	343809	2

View Market Depth

No.	Vol.	Price($)
2	290347	0.020
1	100000	0.019
2	1034231	0.018
2	1050000	0.017
1	1000000	0.016

Price($)	Vol.	No.
0.021	343809	2
0.023	270354	2
0.024	265827	2
0.030	803353	3
0.040	100000	1

Last trade - 13.43pm 11/09/2024 (20 minute delay)

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Ann: Intiger Commences Pilot and Partnership Program, page-1449

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Ann: Intiger Commences Pilot and Partnership Program, page-1449

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