This all looks good to me. At least one of the acquisitions outperforming, and no news on the others presumably means they are doing as expected. And the bank hasn't handed them a $10m credit line without a check of their overall financial health and risks. As vfrioni says, growing size will reduce risk (other than through leverage) as well as producing economies of scale (many of their administrative overheads, and presumably the software development costs, are going to be largely fixed).
I reckon there's a reasonable chance they'll make 5c EPS this FY, in which case a 1c dividend would seem likely. A 15x multiple would seem warranted, and a 20x multiple wouldn't be outlandish (looking at some peer comparisons). My current valuation is around 80c, but if they can add another $5m or so in acquisitions I'd have to revise that upwards by some way.
KKT Price at posting:
57.0¢ Sentiment: Buy Disclosure: Held
