Current price at $0.21 implies market capitalization of 35 millions AUD.
The recent volatility probably comes from small investors, as indicated by low volume. One of the key reasons behind the sell off is when investors doubt themselves and ask "CMP is too expensive and how much CMP is worth!"
Let me just summarize the key catalyst over the next 6 months.
1. (100%)Spin-off of DWL is value at 24 millions USD
2. (100%) Spin-off of Brain research is valued at 5xRevenue. EBITDA about 1.1millions USD, translates to 2 to 2.5 millions revenue. Spin off is valued at 10 millions USD.
3. Ehealth launch is absolutely a key changer with two platforms, eHealthMedics for professional and eLifeMedics. Ehealth is an expansion of CMP's core business, Sleep and Neruo Diagnosis with strong technology/experty competitive advantages. Somfit is the recent only medical-graded wearable devices released by CMP to form part of its eHealth products. (already $10millions locked in order, in CHina)
4. The current P/E is about 20. But, as the off-shoring process and weaker AUD continue, P/E should improve significantly. Also, bear in mind, a lot of revenue is invested into R&D, so the P/E does not take into account about any investment to drive growth. Without the cost of R&D, the P/E would be more like under 10. But, investment in growth/core business is critical to company's future.
A lot of investors forgot to see the vision of CMP, especially when all I look at is P/E and some financial metrics. With improved communication and continued expansion into hospital/professional sectors, CMP is laying the foundation to launch its eHealth and consolidate its leading position in the market.
For those who want quick number, the Spin-off "alone" (100%) of DWL and Neruo scan is worth 30 to 35 millions USD => about 40 millions AUD. Yet, the market cap is only 35 millions AUD. You do the math!
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