Opportunity Knocks ?

Well Milford have sold a little this week having taken up the rights issue fully at 85c.

Top five shareholders as of today:

Skipton Building Society 14.4%
Harbour Asset Management Ltd. 8.83%
USA Health Investors LLC 6.66%
Samuel Gareth Morgan 6.19%
Milford Asset Management  5.73%

My view is that WYN is now well and truly oversold, even on a present crude price sales ratio basis of 1.3, sentiment has overcooked the slide, and things will stabilise about here. We are yet to find out who is doing the buying at the moment also from the likes of Milford.

Where are we at in terms of status;

Poor management over the last year, poor sales and marketing, poor cost control, poor price point control, but with a bold turnaround plan now  in place, $10M in debt financing with Skipton secured if so required, and a firm expectation of being cash positive at financial years end with a substantial reduction in cash burn having pursued some belt tightening.

Going forward,

One has to believe that present management can turn this thing around, they have fantastic products endorsed by major corporates and govt entities now globally, to me they just need better governance and direction.

At 21c per share, Wynyard are a big time takeover prospect now, new management coming along inheriting the present product suite and this whole enterprise would just fly. What’s a likely takeover price, 50 to 75c in my view. Else, I could easily see them back at 50c anyway upon the next big contract sign up, noting that the contract agreements historically do tend to fall during the second half of the year.

I’m buying at present into the high risk high reward part of my portfolio.

All the best if you are doing the same.
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