Bloodwynch, using a net profit of $3m and a p/e of 8 gives a cap...

Bloodwynch, using a net profit of $3m and a p/e of 8 gives a cap of $24m. Add $3m from options exercise gives total cap of $27m. Using 500m shares gives sp of 5.4c so still plenty of upside using your worst case (imo) scenario.

I happen to think that a p/e of 8 is a bit conservative even assuming no growth. 10 is more appropriate imo.

However, if we use your scenario (no growth opportunity), TOX should be able to generate about $2m of after tax cash. Given no growth then this would allow a perpetual dividend of 0.4c. At the current sp this gives a 10% ff return! Not bad by anyones standard. Imo a dividend of 0.4c ff would support a sp of nearer 10c.

I would be very surprised if TOX are considering using their cashflow to pay dividends in the near future. Rather they would be formulating a growth strategy as there is large pent up demand for their services.

The market must give management a little time. The current breather in the sp is imo a case of traders exiting, being replaced by investors.

cosmos