I agree there appears to be some compelling value in this...

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6,133 Posts.

255

07/09/19

18:46

Post #: 40350599
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Originally posted by stan255 ↑

Just over a year now.

I am accumulating more. I don't think there is anything left to see. The results are already out. The only question mark is the macro economic picture which every business is susceptible to not only ATL.

Here are a few reasons why I'm accumulating:
#1 - The P/EBIT (adj) is 2x. I can't even buy a private business for 2x EBIT.
#2 - From an adj EBIT valuation point of view, it dropped by ~10% from 40m (FY18) to 35m (FY19) but the market cap of the business dropped by ~75%. If that's not an overreaction, I don't know what is.
#3 - They are well funded to execute on their growth strategy. They don't need a cap raise to fund working capital unlike 90% of the small caps out there.
#4 - The founders (Luke and Karl), chairman (Stephen), non-executive director (Sophie) have all increased their holdings since last FY.
#5 - Management owns > 50% of the shares.

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I agree there appears to be some compelling value in this potentially...

NTA is currently at 0.45 (10% discount) and book value of NTA at 0.65 (~50% discount).

Do you know if debt is syndicated from Aus, or locally originated? It's difficult to consider all the FX risks here.

EBITDA margins in 1st half super attractive, but crunched big time in 2H

ATL Price at posting: 40.5¢ Sentiment: Buy Disclosure: Held
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I agree there appears to be some compelling value in this...

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