8.8M MC with 440MM shares quoted.
Looks like the market is pricing the cash of $4.5M at 0.9 c
Which gives the Enterprise a Value of 1.1 c, at a share price of 2c
1.1c for an expanding enterprise, currently cash flow positive and getting set to generate profits.
Perhaps going to have revenue of $35 - 40M pa.
FY 2015 they achieved the first goal... "if the Company achieved AUD$12,000,000 in actual gross revenue with a minimum gross profit of 10% within a period of 2 years from Completion"
Next goal is ... Cirrus achieving AUD$2,000,000 in EBIT during any rolling period of 12 months within a period of 3 financial years from 2/7/2015 (“Milestone 2”)
So if they do manage this for example then they achieve earnings of 0.45 of a cent per share.
If we use a PE of 20 then the share price could be 9 c
Risks are still real, but I like the way these guys operate. Selling their own business (L7) for millions (what was it $17M?) then buying it back for half a million. Epic.
Oh and the CEO Matt Sullivan has 33 Million shares
If i've made an error here I'm happy to be corrected. Chin up it's only money.
CNW Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held