Ann: Successful completion of $1.95 million entitlement offer, page-17

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herbalist

7,075 Posts.

74

13/07/17

19:02

Post #: 25853622
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Originally posted by Researcher101 ↑

Hey Verce

I think in its present form, with current management, and the current cost base the company is "uninvestable"

Best Case Scenario

If the company could reduce its cost base to around 3-4 m, and get its revenues up to 15-20m, in the next 24 months - then it could trade on around 3 x revenues. This equates to around 9c to 12c per share ??

BUT I think the prospect of this occurring without a new management is highly highly remote.

Don't forget this is a pretty capital intensive business, and unless the company's customers or suppliers fund its working capital then its going to need to keep coming back to the market for coin.

Before you refer to the debt facility - what are the terms? How much margin is being given up? and as our friend Fourdollars previously suggested it looks like its just factor financing that has been offered not a general purpose facility.(??)

Whats more likely in my view (without a change in management), is increased costs, lots more announcements of awards, lots of announcements about trial site wins ... and before you know it another capital raise - I fear that will be at 1.5 to 2.0c

Who know's though ... that's the beauty of the market.

It's a shame though cause the technology really seems to reduce energy consumption, and in this market of wholesale energy prices of around $180 MW/hr in Victoria customers should be bashing down the door and the Company should be "shooting the lights out" (pun intended)

Good luck mate ... just don't bet the house on it!!!

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Interesting way to value a company.

VIV Price at posting: 4.6¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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