I have done a back of an envelope calculation on the leverage that praemium gets on new Fum and the results are truly staggering.Fum increase in last 12 months was 1 billion ,ebitda for the last 6 months improved by 1.1 million therefore assume for 12 months ebitda is 2.2 million(this is very conservative as stated in presentation they had increased revenue win on a old contract which started in last quarter and would flow into next quarter and beyond)Based on the above figures every 100 million added to Fum increases ebitda by $220,000,if Fum increases by 1 mill this year ebitda would increase by 2.2 million to have total ebitda to 4.4 million a very nice result I believe .The market will wake up to this leverage very soon I believe
PPS Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
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