MPHOB Undervalued, page-2

I totally agree .

I read the media release tonight after the asx query and the future seems very bright.

The company has projected a revenue figure of $20m and a profit of $1.7m .

This is based on the first month of that revenue being $1.1 revenue and in fact it was $1.9m.

Further more they have said that sales for the entire 1/4 are up 84%.

Doing the fundumantals ,its hard to forecast a fair pe, but its obviously a growth stock with the DVD PART OF THEIR market growing 204% and their slice of that market going from a mere 2% to 4% in the last 12 months there is certainly plenty of scope for upside .

With a $1.7m profit forecasted and about $6 or 7m cash in the bank according to the balance sheet at the last reprt date ,on a revenue of $20m,its reasonable to expect a pe of 20 or valuation of 2 times revenue.

Based on this,the 45c share price seems undervalued.

With this option having 4 years to run I concur that the options should have a premium on them as well.

I bought some mphob today with the expectations they will come back inline with the share price and move to a premium as the market sees the exercise price is 32 not 40 as one broker I talked to thought when i called him for an opinion.

The stock has traded strongly in early trade in Europe code (901889) at 27 EURO which at 56.5 euro to the aussie dollar is 47.7c.


As i said i own MPHOB so do your own ressearch .