I have bought a small parcel of AAX at the issue price on the basis that it is underwritten and should have limited downside at that price.
Am planning to buy more but reading the 'retail information booklet' and latest ASX announcements has given me pause. I would appreciate the feedback of those more familiar with the stock.
I do not find the retail information booklet very helpful. My back of the envelope calculations indicate full year revenue of $450m, underlying NPAT of $5.5m, cash flow of $40m (half year result times two) and NTA after the issue of about 54 cents. Equity after the rights issue (+$28m) and after stripping out intangibles should be about $90m, compared to debt of about $42m ($62m at the half year less about $20m from this issue).
It seems the company has been on the aquisition trail which can be a big red flag.
I would appreciate any feedback from those that know more than me
Add to My Watchlist
What is My Watchlist?