I'm glad someone raised that. I'll be voting against all the...

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johnnyfiasco

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26/10/16

19:42

Post #: 20147012
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Originally posted by theworst911 ↑

Definitely Q1 has gone backwards in terms of revenue and EBITDA previous quarters.

-Track was originally doing $30m revenue and $13.8m EBITDA annually. For FY17 I'm estimating it has fallen to $23m revenue and approx $5-6m EBITDA.

However, imo this has already been priced in, which is why the price has been at 14-15c for so long, and it is not the end of the world.

Dom has been consistent in saying that Q1 has been traditionally a slower month - from Q1 FY16 trading result:
"Pleasingly, Crowd Mobile has been able to demonstrate continued organic growth, with billed messages growing by 12% over the quarter, in what is typically a slower quarter given the European summer."

Market currently values for the company to go backwards (especially in Track) - and not forward, and has priced in significant risks in the overall gearing, which is true. If EBITDA could stay at ~3m in the next three quarters, the net debt of $12.5m could be significant lowered.

In the worse case at $2m ebitda, this company is still trading at a value lower than track - when Q&A is growing.

Still trading at a discount imo, and I believe next quarter result will only tell you as much as this quarter's result - the key is longer term.

Having said all of that. One thing for sure - all those rights and performance shares the AGM? I would be voting against,. Their internal performance measurement is not consistent with shareholder value.

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I'm glad someone raised that. I'll be voting against all the performance rights as well. I did a comparison on some similar companies and management are being sufficiently paid without taking into account equity settled remuneration.

CM8 Price at posting: 14.5¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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