KAZ / SMX Comparison

Guys

These two companies now apparently are trading on Par for FY03 figures. With EV/EBITDA both at 6.8 and on a growth footing these are both an absolute steal...

KAZ SMX US Companies
Price 35c 50c
Shares 780M 328M*
EV 273M 164M
Rev 270## 150***
EBITDA $40M $24M**
EV/Rev 1.0 1.1
EV/EBITDA 6.8# 6.8** 13-18X
Cash Balance $55M $45M
Bank Debt $50M $0
FY03 Price Tgt $0.80 $1.10
FY03 EV/EBITDA 15X 15X
FY04 Growth 18X 18X
Price Premium $0.96 $1.32

* Assumes full buyback of 32M subtracted from
360M shares on issue.
** $24M EBITDA for FY03 - Easily achived now
loss making businesses are gone & marginal
performing SMS branches back on track.
***Assumes 10% inc in SMS revenue over FY02
# Assumes $40M EBITDA FY03 - Recent Guidance
of $36.5 for FY02.
# FY02 Rev of $247M assume 10% inc in FY03

All the Best

THE SUR`GE