Yep, at face value it looks attractive...but kick a few rocks and you see the flaws. Two entrepreneurial 'big thinking' brothers set out to conquer an entire industry by buying up manufacturing, selling and rental of RV's....in Australia at least. Do they have the ability and talents to amalgamate them all and extract the synergies? Not only that, can they manage large operations in AUS/NZ and North America at a time when the RV industry is cooling plus try and unfurl operations in Europe when faced with BREXIT etc? I'd suggest the two downgrades and the acknowledgement of a need for a high powered CFO are good pointers that there are many internal bushfires. That, plus the huge debt are good enough reasons to remain on the sidelines and see how this plays out. The FY19 figures will surely contain a partial W/O of goodwill on the Aussie side of things and I'd suggest at least $6m will go here. I see the statutory NPAT at around $7m or approx 4c eps. FY19 NTA of around 47c looks good v current porice of around 38c...but what write offs will be taken when selling all the vehicles.
ATL Price at posting:
37.5¢ Sentiment: None Disclosure: Not Held
