High Risk Warning, page-11

buy or sell?

The only caveat is the valuation on around 32x trailing FX-adjusted earnings of NZ$0.39 cents per share is reasonably high.

If we aggressively assume the company can grow earnings at a 20% compound growth rate over the next 7 years as its operating leverage kicks in and use a conservative 0% terminal growth rate on a discount rate of 11% the stock is worth around A$9.89.

The U.S. market is also something of an unknown for now, but boasts potentially big profit growth opportunity over 3-5 years.

Given the robust cash balance of NZ$464.8 million provides room for dividends or buy backs down the line the stock is likely to receive more support in my opinion.

A hole sounds good to me