Cash untill Year End + Upfront Payments, page-2

Agree Blocky:
Up front distribution rights payments will be very handy and add to working capital. However, everyone is forgetting though that IDT has some good cash flow coming in from Cmax and other contract research operations. With the A$ tanking it will be making their pricing far more competitive again. The big downturn in profitability for IDT was a direct result of the high A$ and the big global pharmas cut backs in R & D spending. The wheel is turning and I will be very surprised if Cmax and the contract R & D business does not crank up solidly this year and again produce much needed positive cash flow.

Before the A$ hit it's natural resources backed highs and was about the mid 70c level and pre GFC, this stock was up around the $2+ mark and paying a steady and excellent dividend yield....and that was the old business model.

The key to me at the moment is the dip in the A$ is creating the perfect storm on all fronts. New generic product distribution will be into US$ markets and contract R & D and Cmax trials is at A$ prices. The valuation of IDT by Morgans at 37 cents is very conservative particularly with respect to the potential growth in it's original core business. It suggests that it will only grow at 5% this year (with 2% increase in costs). Well if that's the case the business managers should be sacked given the competitive edge they now have.