Matt,
Just a back of envelope scribble to support your contention of I suspect, a soon to be realised market value of billions. The primary market for AKP is without doubt, the mobile phone and ipad sector. The rest will be the cream.
AKP: MOBILE PHONES MARKET ONLY ($US)
ASSUMPTIONS:
MOBIL PHONE SALES PER ANNUM 2,500,000,000
EBIT MARGIN $1 PER CHIP 0.50
COSTS 20,000,000
Number of shares on issue
(assumes capital raising) 27,000,000
Tax rate 0.3
Payout ratio 0.7
Share price 12.00
Market Share 25% 50%
EBIT 292,500,000 605,000,000
AFTER TAX PROFIT 204,750,000 423,500,000
EPS 7.58 15.69
Div per share 5.31 10.98
Yield in percent Excludes franking 44.24 91.50
PE 10X 75.83 156.85
PE 15X 113.75 235.28
PE 20X 151.67 313.70
Multiply number of shares X price to get MC of company and potential value (Range $US 2b -10b).
AKP Price at posting:
$10.40 Sentiment: Buy Disclosure: Held
(20min delay)