Now I thought a lot about this last night and crunched some numbers and did some ringing around and reached the following conclusions I will share.
Facts 1. EBITDA $10.3-11.3m....revenue $65-70m 2. m/cap $15m 3. Cash on hand of $4-6m (debt $21m) 4. No Margin stock for directors 5. No m/cap banking covenants 6. Directors buying stock at much higher prices 7. 14 businesses in the group. The largest being Next Digital. It's the jewel in the crown and probably worth $25-30m. Next is growing at 30% p.a. 8. Business is cashflow positive this half. 9. Stock down 81% on IPO price 10. If hit EBITDA of $11.3m this is in-line with prospectus.
Potential 1. Hostile Takeover 2. MBO. Management already own 60% 3. New contracts. 4. Bongo expanding rapidly. 5. General recovery in the market and industrial stocks
IPO NOW EBITDA $11.3m $10.3-11.3m Price $1.00 $0.19
Once AGAIN.... market cap $15m.....
CQU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
