thought it was worthy of its own thread. Not that you should put to much store in what the media come up with but at least its getting some attention.
I see ETC made the AFR today in an article titled "Small caps to watch for big returns"
I don't have a link to the article but the key points are
- the market has been unsure whether to take mgmts $48m NPAT guidance for the year seriously as it is a big jump from the previous year
- but there are signs the company is winning over skeptics having risen 830% in 12 weeks. (my comment - the 830% s a typo in the article and is more like 83%)
- if the company hits profit guidance it is only trading at 4-5 times earnings
- with most govts grappling with issues of higher security ETC is in a favourable position to win new contracts - says the CIO of Atoms funds mgmt David Shearwood.
- Shearwood believes the ETC's NPAT could double in 2009-10.
- although he warns one of the key risks is delays in payments from clients is a problem
- Bull Case - some experts think the stock could double over the next year. looks cheap if mgmts earnings guidelines are to be believed.
- Bear Case - Lumpy cash flows. Risk of delayed payments. Outlook also hinges on contract wins and sometimes in emerging countries with higher political risks.
------------------------------------ Over and out.
ETC Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
