Understand some of these frustrations, but I have only been in...

Understand some of these frustrations, but I have only been in post consolidation.

Taking the last 3 or 4 years results,

EBITDA

FY07 -11,739
FY08 -8,057
FY09 -1,481.24
FY10 477.65 (yay)

EBIT
FY07 -13,611.36
FY08 -11,442.07
FY09 -6,920.12
FY10 -2,770.02 (note the billing system depreciation)

70c values this at around $8.9m market cap which on an earnings basis is ok.

But,

Cash $4643m at June is $0.52 per share, and ENG was op cash positive at 2H10, and the presentation forecast continuing cash +ve. So keeping cash constant, the business value ($0.70-0.52) is $0.18.

At $477k EBIT, that is an ebit multiple of 4.8x, which is not too crisp for a growth business, before asking for a control premium.

f111