What is a recap offer that you would vote yes to?
Here are some rough and ready calcs I've just scribbled down on a notepad at Cairns airport to kill some time inbetween my next flight.
SGL Aus FY17
Revenue $226.7m (~75% PIL, highly dependant on advertising)
NLBT $67.2m - don't have NLAT reported on a seg basis but I estimate $62.2m when allocating about $6m in interest expense on the existing A$ debt facilities and adding back the goodwill impairment which ideally should not be recurring.
Net margin -27.4%
So going back to SWC's beloved 15% net margin scenario, FY18 perhaps?
On shrinking revenue, -15% in FY17, let's assume it holds current level in FY18 at $226.7m producing $34m net profit.
No more warrants it would seem so let's assume 95% dilution or 6.94bn SOI post recap.
Let's assume SGH (SGL Aus) trades at a PE of 10x or $340m. That yields a SP of 4.9c.
For context, the current PE multiple is -0.4.
So I struggle to understand why you think your shares are worth more or why you would vote no?
- Forums
- ASX - By Stock
- SGH
- Ann: SGH FY17 Results Presentation
Ann: SGH FY17 Results Presentation, page-177
-
-
- There are more pages in this discussion • 186 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SGH (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online