Thanks,
@farmerb22.
I have been patiently watching and waiting for the right entry since you alerted this to me at 29 cents. I've done some digging around and I like what I see here from a risk/reward perspective. With the share price pullback and the register starting to tighten I've now entered.
In at 20 cents for a market cap of $15.3M AUD (EV of circa $20M).
Management Guidance for H1 FY21 is Revenue = $34 to $38m. EBITDA = $3.6m-$4.0m. PBT = $2.4m-$2.8m.
My estimate for annualised earnings post-tax for FY21 is circa $4m.
Applying a modest PE of 15x (industry average 29x), we arrive at a fair value market cap of circa $60m for an estimated fair value SP = $0.78.
Let's see how the next few quarters play out.
I think there is 2-3 bags on offer here.
T.E.P.
@fareki, might be worth a look.
