Hi all,
Been following this stock for a while but not a shareholder....yet. The stock has been horribly overpriced for some time but now the numbers are starting to come through, although looking out 12 months this is still on the expensive side IMO.
$40 million in revenue for FY09 looks like a stretch and whilst talk of 60% operating margins looks very likely 40% NPAT margins are sheer fantasy.
NPAT margin for FY08 was 12%, 2H08 was 17%. Remember though that the company is not paying any tax yet as prior years accumulated losses roll off. An NPAT margin of 40% once the company begins paying taxes is extremely unlikely IMO.
That said, margins look set to improve and sales are growing strongly. The company seems well positioned and it's product blows the competition away. As someone else mentioned, the next cashflow report will be interesting to see if the company can keep the momentum going.
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