News: MTO Motorcycle Holdings Sees HY Underlying EBITDA In Excess Of $20 Mln, page-4

I did more research....and purchased additional shares today.

Even on last years financials (sure they had a good May, June, but poor March, April).......company is trading on a EBITDA multiple today of less than 6. ($27.6m EBITDA last fin year). They grew cash by $30m last fin year.

Yet in the Morgans presentation, this is some of what they said about July and August trading:

Six Victorian stores were unable to open - sales have continued by phone and internet with contactless delivery ▸ Expectations of pent-up demand when stores reopen = Sales maintained at 50% of normal trading level

Industry-wide units increased 57% in July, and 23% in August - road bike unit sales not as strong

Increased margins on new and used bikes due to limited supply of stock

Cassons sales increased 20% on FY20. Retail accessories increased a similar amount

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Sales are going to returned to normalized levels, but when ? In the meantime, it looks like a cash bonanza for the company.....off a ver modest market cap.

Of significance in looking at EBITDA - no real debt and a stronger aussie dollar this year, really adds to the above calculations.

Not much retail interest in this company, judging by lack of chatline interest- that is a big plus, if in fact retail investors have not discovered this most interesting opportunity.