The reasons I think Ebet Limited has great potential are as...

The reasons I think Ebet Limited has great potential are as follows: The new non-exec Chairman Paul Oneile has extensive experience and contacts in the gaming industry. His record is good and has come from a much larger organization in the format of the multibillion $ company Aristocrat Leisure. He was CEO of international operations from 03 to 08 (so he should stick around for a while) where eps grew at over 20% pa during that time in a much larger more cumbersome company and covering the gfc also. Paul had no obligation to buy shares but he has already started with a somewhat small amount but none the less very quick to get started in buying. EBT is situated in 9 countries around the world and with Pauls international experience this will help. Forward looking statements from the annual report: "significant opportunities for future growth and development" their market share is growing.

The technicals have been great recently with 3 year record volume on the weekly and on earnings breaking out of a multi year channel hitting 52 week highs (share price is up over 100% in the last 52 weeks)

On the numbers side of the business EBT now has all time highs in Revenues and profits yet the share price has been higher in the past at 29 cents in 2004 demanding a much higher multiple at the time. NPBT up 170% ebit/ev yield of 7% enterprise value of $37M market Cap of $19M.Recent tax rate has been 46% yet the average over the last 4 years has been 18% which would've given us a better $2M npat and a current multiple (adjusted) of 9.The top line revenue growth was 24% with the 3 year average being about 20%. Operating cash flow was strong at over $3M. ROE is 17% and improving. They have been reducing debt a lot over the last 4 years. Current npat margin is 3% with a historical high npat margin of 9% I think they could get back up there meaning triple the profits. Aristocrat Leisure 's npat margin on average is 16% (5 times as much) and Ainsworth gaming tech is over 20% (6 times +) so now that Ebet is moving further into these types of markets, reduction in debt and costs I say higher margins to come. With margin expansion up to a conservative 9% and revenues flattening out (more likely to continue growing) and the PE Staying at 10 we should have have tripled earnings in 3 or 4 years and hence share price. With an optimistic margins expanding to 18% (6 times) revenues continuing to grow at 20%pa (times 2 in four years) and the PE expanding to growth grade 20 (times 2) we could have current eps 0.8 c times 6 times 2 = 9.6 cents per share times the higher (PE 20) multiple $1.92, which is I admit very optimistic but hey it happened to AGI !!!