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08/04/15
10:57
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Originally posted by longshot41
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Billcan, expect more stellar growth as per previous updates IMO with SP to scoot once we get a PE closer to 9 which is coming sooner than people think.
You are getting a 7.2% gross yield (if they paid a 100% dividend) approx this FY if you divide a profit of $5 mil before tax into 381 mil shares. It's been a while since I crunched such numbers in case this is inaccurate.
If they double the profit to around $9 or 10 mil (as per Collison's report) next FY you will have a 15% return and so on. I'm hoping they will announce a 0.5c divvy for this FY or next at the outside to hand back excess cash which they don't need over the $10 mil swelling their a/c now. Perhaps they might buy more strategic companies like Egg Mobi and PF but they have plenty of dough for that anyway.
That would surely jolt the SP into the late 20's plus any OS growth the market thinks will come via UK and SE Asia (which is overdue to expand into other regions via SingTel).
This is a classic EPS growth story like Carsales and REA with a real cash machine which will richly reward the patient shareholders and astute accumulators at 18c IMO.
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LongShot, look at the market cap and PE of Domino.....there we have a management worth the praises, with MBE, it's totally unwarranted........