This company makes around 4 cents per share in pre-tax profit ($6m / 150m shares, plenty of tax losses) and growing.
If it traded at a mere 10x earnings that would imply a 40-cent share price + 6 cents per share in cash.
If the company has provisioned accurately for FY19, the numbers remain unchanged because full year earnings will be paid out in claims, so that the cash balance remains unchanged.
• In the video, the CEO mentioned some pricing changes. This is an opportunity for some price increases.
• With the previous MD and CFO leaving, cost savings will be available.
• The company will have Professional Indemnity Insurance going forward.
• Today (28th Sep) is the last day for submissions to the Royal Commission. It doesn't appear CAF has been called up again.
• Markets have risen since 30 June which will increase Ventura's revenue accordingly.
All this company needs to do is sail through FY19 paying out $6m of claims. In FY20, another $6m+ will come in, and $x will go out. And in FY21, another $6m+ will come in, and $y will go out.
CAF Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)