baby and bathwater, page-48

I thought my comment was reasonable. Company is forecasting PBT of 16m with a 40/60 1st and 2nd half split. They will pay negligible amounts of tax due to tax losses but that is not sustainable. Proper tax being paid would see that at 10.2m it will look so again PE low but not super low. It will look a lot better than that with a PE of about 5.5 but tax losses will be used up in 2 years.

This result is predicated on a pick up in the current activity so if you use their prediction you are pricing in growth into your model. Currently DSA is basically not contribuiting to revenue and they are pricing in contract wins for DSA.

So potentially undervalued if they win profitable work, cashflow should be good so it is a solid company.

Will it make you money who knows? I'm only looking because it might but again not yet ridiculously undervalued even at an all time low. To me ridiculously undervalued is where you get the growth for free.