Originally posted by risk41
My kind of downgrade. There probably will be a fall because it is a downgrade but they are still generating cash (before tax and dividends) of $13-$14m and the Ev of this co is approx $40m. I cant wait until these guys are happy with the result.
@risk41 you're mostly correct but the one thing I must take issue with is your assertion that they're "generating cash of $13m-$14m". OCF and EBITDA are two very different things. They say they'll still be OCF positive, but after divs and capex you'd have to think they'll have net outflows.
As you rightly say, the sp will probably fall tomorrow (though perhaps not much, as a downgrade of sorts was probably to be expected), but with an EV of $40m or so at today's last trade, it's wildly cheap - and I'm sure as heck not selling at this level let alone something even lower.
(20min delay)