great buy at these prices

Looks like the dumping yesterday was probably loose hands from the 2c convertible notes, and I suppose why not given the quick profit that can be made.

Given what Peter Kazacos has been able to achieve in the past, if he can deliver half of that this will be a great business.

I reckon the fact that they have put guidance of EBITDA of $7-9m out there, means it should be more than that, however if we take a mid-point of $8m, apply a multiple of 8 (reasonable given Oakton, ASG and SMS multiples) and its growth potential, this would give it an Enterprise Value of $64m, take off the $5.6m of debt you get a market cap of $58.4m. With 1.2B shares on issue, this gives a price of 4.8c. If they do some more acquisitions (as they have outlined) this should definitely add value to the business as they will be able to buy these businesses at smaller EBITDA multiples.

The fact that Peter Kazacos took up $2m in new equity suggests that he thinks that this is a great buy. The management team also put money, again, another buy indicator.

Cheers
Marv

DISC: I hold