News to sell on, page-70

I agree Brick.
If the acquisition can make us cash flow neutral and then add 2 x $10M deals then a market cap of $300M+ would be pretty reasonable.
The market tends to put pretty big PE's on growth stocks especially if they could close a deal or two this size. The market at the moment doesn't believe they can close a deal worth this much after BBI fell over due to their sale. The other interesting point is - is it $10M Australian or euro or US dollar.

Just to show a few SPECULATIVE numbers;

$14M euros x 20% = 2.8M Euros

Exchange rate .63 euro cents per aussie dollar

Roughly 3.5M Australian

I have down to ask at the AGM what projected EBITDA Anteo have once M&G is incorporated through the range. Surely they would have an idea as part of the acquisition process. Even a 5% improvement through lower COGS or higher prices makes a $700K euro difference which is roughly $900K Aussie. I would have thought it would be higher than that but trying to be conservative.

3.5M + 900K = $4.4M which would make us slightly cash flow positive.

Lets say they borrow $6M euros @ 7.5% interest rate. $450,000 interest plus principal payments. Call it $1M per annum repayment over 10 years. (rest raised through CR / SPP & script)

Add 2 deals worth $10M = $20,000,000

deduct $1.4M Australian for 1M euro repayments = 18.6M Australian

Deduct 30% tax = $13M profit (even though we have $30M worth of losses accumulated)

Add 55M shares for purchase of Diasource to work out EPS. Roughly 915M shares depending on options if converted.

I have left buy out of the equation at this point.

What kind of PE will the market give for a company with 8 other $10M deals in the pipeline where expenses wont increase in line with revenue?

PE 20 - $260M 28 cents
PE 30 - $390M 42.5 cents
PE 40 - $520M 57 cents
PE 50 - $650M 71 cents

Plenty of companies have PE's much much higher than this whilst in growth stages.

A HELL OF A LOT of water to put under the bridge, but goes to show how quickly this could turn in the new year.

And before you say well deals will take time to reach $10M in revenue well that may not necessarily be the case.

Bioseparations from my understanding would be pretty quick especially if they have established the whole manufacturing chain as I remember reading or hearing somewhere.

Incorporation as a platform into a range of products for (I think Sigma) will also lead to quicker revenues.

Depending on how the company words the announcement will depend on how hard it runs when these come off IMO.