A bit of wishful thinking creeping into that post piotrvip...
re: PE 8.7x
The only way to get this is to use the upper end of the companies forecast of ADJUSTED earnings for the current year. Problem 1: using the upper end of a forecast, no guarantee this will be achieved. Problem2: using adjusted earnings instead of reported earnings. What adjustments will made to the reported full year earnings to reach the adjusted ones? we just dont know, probably whatever accounting fudges required at the time to make the accounts look reasonable.
re: Debt reduced by 22% from $180m to $140m
FALSE, NET debt is reduced to around $140, actual debt is still around $200m. Cash raised has not been used to pay down debt. Company mentioned that the cash places them in a sound position for future acquisitions. It appears there is no intention to pay down debt any further. Thus net debt looks likely to increase again.
IDL Price at posting:
$1.32 Sentiment: None Disclosure: Not Held
