Madtrader/Analyst and others, some great posts here and thanks...

Madtrader/Analyst and others, some great posts here and thanks for sharing. I'll throw my thoughts into the soup mix for what they are worth.

(1) I've long given up on hoping for transparency into the accounting treatment/amortisations/ discount rates etc etc. I believe they are proprietary knowledge which they will never share in light of competitors etc
(2) I look principally at their indebtedness and their ability to generate a consistent stream of "real dollars" from which they can pay dividends and have some left over to reduce debt and grow the business. Specifically, the free cash flow as a percentage of enterprise value.
(3) In assessing enterprise value I look to balance out the debt (FY16 of $118m) against the PDL's (FY16 of $265m). A collection rate over time of 44% will acquit the debt. Possible? Yeah, I think so based on recent experience. The same figure for FY15 was 45% so the cash they generated this year is proof that they can throw some real cash into the ring.
So my current enterprise value is simply MV less cash equivalents or approx $164m @ $1.30.
(4) Free cash flow for FY16 was a net of $17.1m thus FCF as a percentage of ent value is 10.4% Not brilliant but certainly a lot better than what others are throwing.
(5) Throw in a PE of 9.3, low BV and NTA comparisons and a CAPE to SP of 11.75 and its not the worst investment running around. But like a few others have alluded I'm going to wait for a lower price before topping up. Below $1.20 is value for me.