Thanks so much for the clarification! :) much appreciated ...

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aussieInvestor

42 Posts.

08/03/22

11:14

Post #: 60053999
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Originally posted by ChasingProfits: ↑

Aussie, you correctly have pointed out that the shares have roughly doubled which was from the company raising capital to embark on their acquisitions a little while back.

Let’s say in this hypothetical scenario $7 to $8 was fair value on the old scale. If they have issued double the amount of shares since then to acquire businesses then those businesses should have been profit accretive. What I mean here is that we should be producing more profits than we were previously. If we double our profits since that share issue then technically we should still be worth $7 to 8 on the old scale albeit we have doubled the shares on issue. We are still worth the same profit per share as we now have double the profits but double the shares on issue. Alternatively if they raised capital to buy businesses and we are at the same profits before the capital raise then this would mean we should be worth only circa $3.50 as we now have double the shares on issue but no profits to show for it. Hopefully that makes sense.

Assuming we pay the same dividend for the next half yearly we are sitting at an after tax return of 6-7%. Might have to gobble some more up in the next two days if market keeps falling. Where else can you earn a return like that? Cheers, CP

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Thanks so much for the clarification! much appreciated ...

IFL Price at posting: $3.51 Sentiment: Hold Disclosure: Held
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Last $2.37		Change 0.080(3.49%)		Mkt cap ! $1.566B

Open	High	Low	Value	Volume
$2.33	$2.37	$2.32	$1.686M	719.6K

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No.	Vol.	Price($)
37	30735	$2.36

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Price($)	Vol.	No.
$2.37	84033	31

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No.	Vol.	Price($)
30	27080	2.360
27	42797	2.350
25	70901	2.340
12	79619	2.330
16	78807	2.320

Price($)	Vol.	No.
2.370	91828	27
2.380	73286	18
2.390	104371	18
2.400	150943	11
2.410	37382	6

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Thanks so much for the clarification! :) much appreciated ...

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Thanks so much for the clarification! :) much appreciated ...

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