Broker Data, page-86

what happened after april beginning ?????????



Provider of mobile phone based information and products relating to m-payments, Crowd Mobile, announced on Wednesday morning that it had generated record revenue and EBITDA in the three months to March 31, 2016.

Revenue for the period increased 242% to $11.5 million and underlying EBITDA was up 515% to $3.25 million. To put this in perspective, EBITDA for the quarter was significantly ahead of the $2.2 million achieved in the six months to December 31, 2015.

Management highlighted that the company continued to generate free operating cash flow on a month-to-month basis and that it was focused on improving margins rather than simply growing the top line.

While this news should be well received, another near-term catalyst flagged by the company this morning is the pending renegotiation of its senior debt facility which it expects will be on materially more favourable terms.

Analysts at DJ Carmichael ran the ruler across the stock in January and it is forecasting EBITDA of 8.8 million in fiscal 2016. Based on combined EBITDA for the first three quarters Crowd Mobile has generated circa $5.5 million and if it delivers a result equivalent to the March quarter EBITDA should be in the order of $8.7 million.

However, Crowd Mobile is really a 2017 story with DJ Carmichael forecasting EBITDA to increase circa 70% to $15.2 million. The broker is forecasting a net profit of this $6.4 million in fiscal 2017 equating to earnings per share of 4 cents.

Based on Tuesday’s closing price of 22 cents this sees the company trading on a PE multiple of 5.5, which appears conservative given DJ Carmichael is expecting profit to grow from $1.2 million in fiscal 2016 to $8.6 million in fiscal 2018.

The broker has a buy recommendation on the stock with a valuation of 97 cents per share.