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clock Created with Sketch. 28/08/17
17:33
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Originally posted by fantale
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My thoughts are that Cirrus paid $1.5mil for Ngage therefore if Ngage is turning over ~25m then Ngage was making around 375k profit which seems on the low side. I came to this by knowing that the current multiplier for these sort of companies is around 4 times ebita. Long and short of it is they really need to restructure as the share price will not materially increase unless they start making around 10% + profit of revenue, so you would need to see the profit around 4- 5 mil. Seems like a long way to go. Management must be focussed on stripping out the waste, running leaner operations and going through a major restructure in FY2018 else how will they achieve larger profit?
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Considering current market cap. 4-5mil profit will be massive. It is part of the reason I am holding, should be 3-4 times current cap if they can achieve it.
