I agree with a lot of what you say AP. I'm just not sure we'll get a fair price. We can see the underlying earnings power of the company but it is not yet clear to the market.
FY11 will probably produce flat eps growth because of the acquisition but FY12 will see a major jump in Revenues, EBITDA and NPAT. VOC is smart to get in now before the market fully comprehends BGL's potential. Unfortunately for BGL shareholders, they won't realize the full value of their investment.
Just on a technical note EBITDA exceeded $625k in March so annualized EBITDA is probably closer to $8m at the moment. Given cost savings over the next 12 months FY12 EBITDA can easily exceed $9m.
BGL Price at posting:
27.0¢ Sentiment: None Disclosure: Held
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