I agree this stock is undervalued , bought a few today , after reading the research note luckily before it jumped to .009 , will look to try get some more if it comes off
over the next few days
I have just read the annual report and make the following comments mostly good , some bad.
1. The ceo is overpaid ($250,000 + ) at this stage of the companies grwoth is overdone , he is the largest shareholder so , I would prefer to see it more like $175,000 until revnues are $5m , I think a Sydney or melbourne based director would aslo be of benefit to help them look for new business add ons , or alliance partners
2. The Tax losses of $6.5m are not capitilzed , so this is worth $1.8m tax saving as the business moves forward, absolute no value placed on this great asset , in fact this asset is more than the total market cap .
3. Revenues grew slowly for the 12 months , but it seems the 2nd half was where trhe company showed improvement with new schools signing on up 20% +
4. The EBIT is close to $600,000 , at a current share price of only 3 times ebit and showing growth characteristics , which included $600,000k on research youd say the upsdie is at least6 3 times
5 The share consolidation of 30 for 1 , will be very good for the market cap as it will show the market just how low the market cap is compared to the EPS , and EBIT . If you look at current EBIT at 600,000 up agsinst a business with less than 8m shares , it is around 8c per share .
6 the fact that the management and board have a track record in this space and have taken a business from start to takeover before is all good
Overall I see this as a high risk 2-3 year opportunity but at this market cap , there is almost no downside in my opinion
A shell company costs $1m , this is no shell, and the tax losses alone are worth $ 1.8m , as a trade sale youd expect the bsuiness would be worth at least its revenue ie 2.5 , so add then altogether and my guesstimate value is $5.3m market cap .
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Last
1.7¢ |
Change
0.000(0.00%) |
Mkt cap ! $8.007M |
Open | High | Low | Value | Volume |
1.7¢ | 1.7¢ | 1.7¢ | $383 | 22.52K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 36297 | 1.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.8¢ | 92486 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 36297 | 0.017 |
3 | 457500 | 0.016 |
3 | 366732 | 0.015 |
2 | 435780 | 0.014 |
3 | 597499 | 0.013 |
Price($) | Vol. | No. |
---|---|---|
0.018 | 92486 | 1 |
0.019 | 130000 | 1 |
0.020 | 98267 | 2 |
0.021 | 725658 | 2 |
0.022 | 459361 | 2 |
Last trade - 15.43pm 19/07/2024 (20 minute delay) ? |
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