It's obvious what's going on here. The latest result showed $24m net cash vs. $10.5m current market cap. The company also has $12m in franking credits and $50m in accumulated net operating tax losses. Don't forget it also has $20m in revenue remaining and some revenue / cash flow to come from the last quarter of the NBN contract this quarter.
Management will try to play this down, but given that 50% of register has changed hands in the last two days with some big renowned activists appearing, the writing is on the wall. This company can easily be sold to a services business who will pay 25-30c for the above assets - especially being able to utilise that tax shield, and can take on the remaining contracts and sack everyone else.
DYOR - but this looks like it will be wrapped up pretty quick. LONG
BSA Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)