best ann. for a long time...., page-2

Hi TEErs:
Hi TEErs:
Post from Trudrive on Oze:-

Market is not quite sure how to treat the ann. atm, but price/volume action yesterday held up on the positive side. IMHO, the deal looks terrific, and here’s my two-bob’s worth:-

* Capital raising is $7m. Extrapolating, $7m @ 3.5 cps = additional 200m shares on existing base of 190m (rounded). Total shares would be 390m.

* “post acquisition” financial analysis section of the ann. says the Dec 05 Profit Before Tax for the new TEE will be $3.9m. (The new group will carry in $11.8m tax losses, so assume no tax payable at this stage). So, $3.9m/390m shareholders = eps of 1 cent to Dec 05. If you want to add a P/E of, say 10 would have a Dec 05 value of 10 cps (could easily be higher).

* So, from a ROI viewpoint, looks like a 250% return over the next 12 months (excl R&D on atmospheric profiler).

Just some general comments :-

* Synergistic benefits of the acquisitions look good, and there should be pretty quick cost-benefits from reducing unnecessary duplication

* 3 Minnows merging with reasonable customer bases, provides secure and highly profitable revenue stream upon which to build, and expand significantly into other states, at TEE’s pace

* NEC strategic alliance looks good and needs to be nurtured for further ‘preferred’ supplier recommendations and opportunities

* So, we have solid revenue & customer platform with good growth prospects in a profitable business; add that to the profitable Beam satellite comms (existing Telstra contract, international prospects, and the recent approvals for maritime usage); then we have the ‘blue-sky’ of the atmospheric profiler and TEE looks a good play.

Probably still in the category of high risk: high reward, but IMHO, the new board has been busy over the last 12 months and the company is reinventing itself. Solid operations management should return steady revenue, and good domestic marketing of terrestrial and satellite products (plus international sales of Beam products) should grow the business. The blue-sky bonus is the atmospheric profiler under development.

GOOD LUCK TO ALL - Trudrive