I took a small position today after a couple of weeks research. I think management just need to work towards their forecasts in the AGM of $34m revenues, $4m EBITDA and $2m NPAT. Based on those numbers the stock is undervalued, let alone the potential of the Innovations arm and the markets that could open up. I think the next half yearly may exceed expectations. I think we may see $18m revenue and $2m EBITDA would be fine given they tend to perform better in the second half.
Even if growth is minimal and falls short of forecasts the SP may still hold up with NPAT growing with a weak Aussie dollar. The downside appears to be minimal, the upside could be huge if they hit one or two of the Innovations markets.
CMP Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)