Compelling opportunity, page-8

First 8 Last

Share
Profile

Follow
acecant

929 Posts.

20

27/02/18

18:27

Post #: 31389946
Share

Originally posted by discursive ↑

I don’t hold this stock, however I have been reading into the business.
Main interest in TFG is getting some exposure into the comestic consumer services sector.
First glance over the fundamentals, it’s apparent this business is in survival mode, closing down under performing stores, restructuring, redundancies, acquisitions and moving on with under performing business partners.
Carried out a $10mil cap raise to invest into the business, current cash balance is at the low end $1.7mil but the CEO is prepared to back this company by throwing out a $750k lifeline (in conjunction with his 5% stake in the business) is a telling sign he is prepared to back this one.
Recent results could be showing early signs of a potential turn around with the last quarterly showing some good signs as they became cash flow positive at 1.2 cents per share.
This is offering a PE of 9.5 and could become more attractive if performance continues to turn around.
I like the sector, I think it’s a no brainer. More importantly I’m backing the CEO Paul Fielding, I think his early days with INA have proven he is capable of getting a business up and running.
I think the share price may face some head winds over the next quarter but given this is trading below book value, I’d say undervalued. So once the suspension is lifted I’ll consider the entry price.
Any thoughts here?

Expand

From memory I think it’s running in a $1m+ EBIT, excluding the most recent acquisition which should add a further $500k-600k. Has been disappointing given they had forecast $3m EBIT, however, I believe there were excuses which only recently had been ironed out. Seems reasonably good value. Instos on the register. Corporate overheads on the high side.

TFG Price at posting: 11.0¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

SNG

Siren Gold boosts antimony resource by 66% to 14.5Kt at Auld Creek, NZ

PTR

Petratherm adds $1.6 to the piggybank ahead of SA titanium drilling program

ALR

Altair Minerals hits high-grade copper and gold at Wee MacGregor, QLD

WR1

Winsome scoping study proposes low-cost operation for Adina lithium project

WMG

Western Mines identifies 2 high-grade zones at Mulga Tank in WA