anyone know when the quarterly is likely to be released?

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Makarauk

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21/04/21

12:25

Post #: 52618808
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Originally posted by stillade: ↑

The debt held by Pure Asset management is convertible at 25 cents. Given they already own 42 million shares, I'd say they are pretty keen to make sure that this debt isn't an encumbrance going forward. Thinking ahead, and given that Pure were issued with 24 mill options at 8c (in exchange for waiving financial covenants for a further year and a small reduction in interest), I suspect the plan is:
1) To see an overall improvement in cashflow (+ $1 mill in the 1st half excluding jobkeeper), coupled with improved sales and keeping costs down (getting rid of MM will certainly help there).
2) Monetize the MXO holding in the next while.
3) Use the above 2 points to pay down debt, which will help the share price, perhaps to a level that Pure could exercise their options for an additional $2 mill.

The result should be a debt free company with $5- 8 mill in cash doing $25-$30 mill in revenue at 40% GP margins and a overhead of approx $10 mill.

If they can generate 15% revenue growth pa ($4 mill pa) to hit their $40 mill target, then you are looking at a $6-8 mill EBITDA business ($70 mill mkt cap at 12x EV/EBITDA) plus cash. That's 14c a share.

There's alot of if's in those assumptions, but this is just looking at organic growth. IF they were to make an EPS positive acquisition over that time as well, then the number could be substantially higher.

Bottom line, I don't think the current SP is justified, and should be higher, given that most of the financial woes are behind us now. This isn't a 10 x your money scenario right now, but with the right board starting (finally!) starting to take shape, I'm more than comfortable to hold/acquire at these prices.

Quarterly out in the next week or so will help firm up some of my assumptions above, and should give the market additional comfort, IF it shows the same sort of turnaround that the 1/2 yearly did.

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anyone know when the quarterly is likely to be released?

SW1 Price at posting: 2.9¢ Sentiment: Buy Disclosure: Held
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anyone know when the quarterly is likely to be released?

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anyone know when the quarterly is likely to be released?

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