I bought in after reading Alan Kohler's positive reports but...

I bought in after reading Alan Kohler's positive reports but sold my holding after the recent quarterly.

Revenue was disappointing in my opinion as an increase on the previous year had been flagged but was not delivered.

Total earnings for the year were around 0.63 cents per share. While debt has been reduced through the capital raising, without a revenue increase the total earnings for the year ahead are likely to be around 1.8-2.0 cents per share according to my calculations.

This would be enough to pay an annual dividend of perhaps 1 cent allowing for growth and market uncertainty, so a 0.5 cent dividend may be announced in the coming annual report.

However, as others have mentioned in this thread, announcing a dividend now with results only just in the black ($210,000 full year profit) and so close to a capital raising is a questionable strategy.

Furthermore, with a coalition government likely to be elected I have less confidence that the NDIS announced by Labor will have the same momentum (although it is a bipartisan policy).

I think the company is absolutely worth buying but perhaps somewhere closer to the $0.20-25 cent mark given current performance and uncertainty.

My opinion only.

Dreamcatcher