Ann: NetComm Wireless Scheme Booklet Released, page-5

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futurenow

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03/05/19

15:56

Post #: 38399668
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Originally posted by imback ↑

Just had a brief read of that 'valuation' and it looks like the biggest stitch up I have seen in a while.

Firstly it was valued on the Dec 31, the bottom on the market meltdown. So many comparative companies they have used were also on low valuations. Love to know what the comparisons would be now after the share market recovery.

They have also not taken into account any of the future revenues beyond what is contracted! That is pretty ridiculous. Some of those contracts will naturally be extended as they have not finished out the roll outs. But additionally, they have ascribed no new contract wins despite the tens of millions invested for the new products and probably many millions spent on trials and supporting opportunities for those tenders! That is a joke and just so conservative that only a shorter would value a company that way.

They have also claimed that a 30-35% premium is average successful TO price for the ASX. So that would be mean about a 10-20% of the companies on the ASX could have been bought out during the December meltdown at their current SP (as many had dropped by that amount). If you include the all the small caps, like NTC, I reckon half could have been bought out. I doubt many currently beaten down small caps on the ASX could just be bought out for a 30% premium today (I guess unless they have clueless NTC type directors).

That valuation needs to be disputed big time! If the directors believe it to be fair then there would likely be a class action as it contradicts the fluff they have been spinning for years. They can't have it both ways.

GLTAH

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WES has proposed to take KDR at 47.3% premium.

Everyone knows the share price prior to these announcements is manipulated down by the proposed buyer to make the TO price look appealing.

NTC Price at posting: $1.09 Sentiment: Hold Disclosure: Held
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Ann: NetComm Wireless Scheme Booklet Released, page-5

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