Completely agree with you. I find it exceptionally strange that this company is currently worth less than the basket case that is Vocation. Vocation has an equity value of $28M (232m shares @12c) and c. $12.5M in debt. VET made an underlying EBITDA loss of $12.9M and has a lot of work to do to turn around performance with an aggressive debt repayment profile ensuring little to no divs over foreseeable period. In comparison ASH is worth c. $37M and has earnings across labour hire and training and I would imagine EBITDA would see be in the high teens for FY16 (market cap c. 2x across entire business or 4x EBITDA assuming no value to training). Understand the current challenges and look forward to the outcome of the strategic review, but this business is priced for absolute failure in my mind. Happy to continue to accumulate at current prices.
ASH Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
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