Billion dollar company, page-207

The type of acquisition based on past comments made by directors at past shareholder seminars, in my opinion, is going to be acquiring workforces/people power in the Philippines to upscale and meet demand at a faster pace. The right strategic acquisition will be faster and cheaper than phased recruitment and ensure that they expand their people power with an experienced, high quality BPO workforce.

Looking at their financials, they have $2 million cash on hand + expected $2 million from exercise of IAMOA by 31 December 2017 = $4 million cash for ordinary activities and acquisition. I am confident that MF and the board will ensure the timing and cost of any acquisitions takes full advantage of the great cash position they are in as revenue continues to grow. Acquisitions of Philippines assets should be relatively cheap so I am not expecting any dilution from the issue of shares or options given the strong cash position.

Just taking a step back also, at 1.7c IAM+IAMOA is only a $23.6m Market Cap or $19.6m Enterprise Value with the $4m cash. At such a low valuation, IAM will have legs at the right time. Obviously, company announcements would make great catalysts but even without them, the market will rationalise the market cap eventually.