Count for what purpose?
EV = mkt cap +/- cash or debt
So you count all cash unless it is netted off by debt.
If cash is spent wisely EV should go up.
In CGT's case I'd expect a bounce on this plan being announced because the EV is just too low right now relative to what the business has in assets and prospects. A lot of people will have lost faith but many of them will have already sold.
CGT is going from 150m shares to 315m shares with extra $15-$16.5m cash (depending on fees).
A 15c sp = $47m mkt cap minus $15m cash = $32m EV about double now. So maybe 12.5c to 15c about right as a starting point next week?
10c rights will look tasty if it bounces back to these prices.
People who bought prior to the 7 November have been smashed.
40c sp = $126m market cap - long way off and would require aim good
production results over 12 months.
Count for what purpose?EV = mkt cap +/- cash or debtSo you count...
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