AU8 Fair Value is 20c+!!!

Thought this would be a much better place to discuss the fundamentals and first day of trading. Revenue in FY17 was ~12 million from the merged buisness and is expected to be anywhere between 25 and 60 million in fy18 based on performance shares. These performance shares only best if 25/60 million in sales is obtained with a gross margin of 13%. At 60 million sales and a gross margin of 13% I estimate 2 mil + profit (excluding ipo fees).

AuMake is expanding from 5 to over 20 stores in the next few years and is currently in a red hot lucrative market with products such as A2 infant formula being in extremely high demand. I have fair value for the buisness at around 20 cents (50 million market cap) based on a profit after tax of approximately 2 million in fy18 (excluding ipo fees) and a 25 P/E ratio. I'm guessing we will be making our way towards this value very quickly on the open on Thursday. GLAH and DYOR