At least, this is Bell Potter's view - Have a read at their latest note on CUS, published a few days ago:
.... It seems highly likely that sovereign funds, private equity groups and cashed-up industry players with at least medium-term time horizons will be considering M&A transactions in order to take advantage of this scenario. CUS stands out as one company upon which several parties may well be currently running numbers. Its share price has been beaten down to $0.08 (last closing price) from a 52-week high of $0.24 but the opportunity to significantly boost its ATM transaction revenue and gross margin has firmed considerably as previous notes have highlighted. CUS well known to private equity buyers ...
Based on our current projections and assuming no gearing, a buy-out targeting a return of 20% a year with an exit in 2011 could justify a bid at $0.20 with an exit EV/EBITDA multiple upon exit 10x (“Best Case”).
Bell Potter retains Buy rating, $0.20 valuation
CUS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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