Chart - Breakout on Monthly Time Frame, page-17

Actually, yeh you make good points. The liquidity would become an issue you/they are right. I don't think they will want to take it private at this stage because they are probably still at the relatively early stages in the business plan,. They may want to keep it on the market to access capital ect in the future for more casinos.

If you look at the potential FY18 EBITDA without the 20.5m management fee and continued growth, we could be looking down the barrel of around 100m. Third Quarter this year was 23.4 m EBITDA which indicates a number in that 100m region for full year FY18. The vip win rate was up yes, but the new junket partnerships and general recovery, plus drive for growth at the properties makes this achievable . I fell like this is realistic, but happy to hear anyone's thoughts if I am getting carried away.

At 100m EBITDA the company may gererate in the region on 55m+ cash earnings. I'm basing that on the recent normalised percentage of NPAT to EBITDA and likely would be more on 100m figure. With debt likely reduced to around 100m at FY17 conclusion, obviously there is going to be a lot of cash to further pay down debt and increase dividends. At 55m cash earnings the EPS would be 6.6c. Will dividends be 2.5c, 3c, 3.5c ? In any event there will be a very large yield vs. the current share price. If, naturally, they go down the dividend path over other options like aggressively paying down the debt or share buy backs.

I understand that this stock may be always discounted given the business and locations but this seems excessive, and one would think that after the cash starts to really roll in during FY18 the share price will have to re-rate after this is reported. To where I don't know, though a business earning over 50m+ a year you would think would have something more like a one billion dollar market cap, not 423m.

SPEC BUY