hi Pman, is ur sentiment still BUY?

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alannnnnnn

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21/11/19

19:50

Post #: 41564485
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Originally posted by Pman: ↑

Hi CMK

Danny mentioned that you slap a Aussie flag on the product and china will lap it up. Manufacturing will need to be in Australia otherwise that will unwide the plan very fast.

As for the set up cost of a manufacturing unit
in the 85m is
25m worth of Debtors cash to collect
12m property which could easily be sale lease back situation

that's 37m of cash that has been purchased. Funny that it is the cash portion of the price. So why not raise a few million instead?

NS has an ebitda of 6m (with add backs which I assume are internal charges considering they own the building) it is up to 7+ m

and from this a facility can easily be put in place.

Also they are going to raise 40m min and up to 50m which if achieved is another 10m sitting there

There is more than enough to get the next two pillars up and running with that cash and pay the next tranche of the purchase. Obviously if CES goes badly or bodyguard is a flop then it all unravels but that was always the risk.

This was always about positioning of the new investors ie the board and friends for the reward

So what is the value of the return/reward?.

Problem I have when looking at it at a high level is with a pe of 15 and new amount of shares, they need to generate 50m bottom line to get to around $2 (the old 10c mark) (correct me if I am wrong) for any great reward. Can that be done with the 4 pillars.

As for expanding NS into ASIA sure you can manufacture in Australia but taking the distribution set up o/s is a stretch. More likely those products are already licensed to other distributors. Our own manufactured products with the Flag would simply be licensed to a distributor and we take a cut. Channel set up would be to expensive and risky.

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hi Pman, is ur sentiment still BUY?

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hi Pman, is ur sentiment still BUY?

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hi Pman, is ur sentiment still BUY?

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