* 11.8 million cash in bank * No debts as of June 2013 * 26.8 millions debt repaid since June 2010 from asset sales and continuing operations * 5-6 million assets UP for sale * Very profitable/low risk assets of McGrath homes and Nomad rental retained for Long-term * Corporate overhead costs reduced more than 75% in last 4 years and is estimated to be as low as 2 million in FY2014.
IMO, MC of Nomad is easily 25-30 million as of today and not ~16.5 million as dictated by Market. Market is yet to appreciate positive cash flow and positive EBITDA assets of Nomad. The best and only way I see to attract interest in this punishing market is to give a good dividend based on revenue we generate from McGrath Homes and Nomad Rental as overhead costs would be very low. SH would be happy to hold the shares on LT and anyone willing to buy our shares would have to increase the bid price, hence the positive climb in SP. I hope new Management and Managing director would be smart enough to outwit the Market and not succumb to the pressure like previous Management team. I see minimum 60-70% rise in SP on ST and could go much beyond that based on new projects and recovery of Mining sector. 2H FY2013 financial results were simply outstanding and it is indication of recovering Market and 1H FY2014 results would be interesting as it could be a trigger for our SP to travel North. These are my opinions only, DYOR.!
NOD Price at posting:
5.9¢ Sentiment: LT Buy Disclosure: Held
