SEQ MC 35m @ 34c Cash flow (1H 18) - 7.3m Cash on hand ~16m,...

SEQ
MC 35m @ 34c
Cash flow (1H 18) - 7.3m
Cash on hand ~16m, little debt, EV = 19m
Financial services company coming into increased profitability from organic and inrganic growth. Dividend policy announced making this company transition into a more mature growing business. Two recent profit upgrades on the back of ~75m revenues.
2 recent NPAT accreditive acquisitions including Interprac. Full year NPAT forecast about 2.8m (~+400% yoy). Interprac has only served 7 months to this year's results. On a full year balanced basis Interprac should give around 1.3-2.6m NPAT making statutory NPAT around ~4m by my books.
Sector average PE is 13.76 so the most conservative PE is 38.5m. Throw in a full year of the Interprac acquisition, this figure boosts to 55m.
On a cash flow / EV basis it is at a meagre 2.6x and that's just using a half year of cash flows. One more year of even incremental growth will prove this a good investment. With little debt and half the market cap as cash, on a risk reward basis this is well worth it to me.
On top of this TA wise we're trading in a channel and Friday saw an incredible volume spike at the top end of the channel, the sell side is the thinnest I have ever seen for a stock and the top 20 own ~65%. Add to this new FY the market should be seeing some incremental growth from tax returns. The psychology of scarcity and the fundamental misevaluation of this company make this an excellent buying opportunity to me. ​