Hi all
Some brief comments
The disposal of the network services business would be very positive, this would leave TEE with a profitable business being beam.
imo provided the business is sold with all liabilities i.e. none residing debt from network services with TEE, I would not care if they sold it for $1. I would however imagine that TEE will have some debt from previous acquisition i.e. vendors, provided sufficient capital is received to cover these with some change, this is also a good outcome.
To be honest I could not think of a negative reason for selling what has been bleeding the company for years. The company under Ian May and then Gesaf gave it crack with no success. Now time to move on ...
Below are some rough calculations on the potential value of the “new TEE”.
Beam profit for 06/07 was $1,656,270 based on Sales of $8,459,000, from memory this is higher than normal sales. Net Profit Margin 19.6%
Sales to date 07/08
Sep Quarter $1,724,000
Dec Quarter not due to be announced until end of month (early figures would be nice) lets assume $1,500,000
Mar Quarter Telstra Order received 12/12/07 was for $2,700,000
June Quarter Assume $1,500,000
Total 07/08 Sales $7,424,000 using last years Net Profit Margin gives a profit of $1,455,104
Shares on issue
Existing 609,726,510
Existing Options 31,800,000
Cnote 148,076,920
C note Options 50,531,250
Shares Fully Diluted 840,134,680
What p/e would TEE be priced at now that it would be a telco growth company? I would think 12-20
Share Price
EPS .00173
P/E 12 2.1c
P/E 15 2.6c
P/E 20 3.5c
This quarter i.e. March 08 will still have the red ink from Network Services, will be interesting to see what the finalisation would be. June quarter 08 will likely be the first real quarter of the "New Tee"
Now that TEE will be focusing on Beam, I would anticipate growth above previous years revenue though this will take time. As per previous announcements they have signed up a number of distributors now it is time to support, assist and grow this area.
Undoubtly the company would be well aware .. No More excuses.
It won't happen overnight, but I can see it heading towards 3-3.5c in the coming 12 months and probably over 2c in the short term.
Cheers
Clever1
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