Well I'm a holder from well into the $1+ regions and have to be...

Well I'm a holder from well into the $1+ regions and have to be honest and say I'm pretty devastated by the recent events around this company. I'm not going to harp on about the old management team because it won't get any of us anywhere.

So...moving on I am interested at looking into projected EPS for this company in the future. The capital raising is not completely set so obviously if it is oversubsribed and they use the funds to pay down extra debt then we will have different figures, but some projections I have found today are as follows...

EPS of 1.3c post amortisation for 2011 came out of Goldman Sachs.

So based on that, we could assume a PER of 10 or so and have a shareprice around 13c. With no dividend in the foreseen future and the complete lack of confidence at the moment I doubt we'll see a PE Ratio above 10.

Based purely on the above I can see some reason in subscribing to the retail offer and hopefully making a gain on the new stock, which will help heal some pain.

Long term though I actually like the underlying business. It is a real shame the previous management team lacked any ability in terms of running a business of this size. The question remains though of where to now for Photon.

Say they manage to pay down debt and eventually pay out the earn out obligations...do they then move back to dividends or perhaps perform a share buy back. With the amount of script on offer I'm keen for perhaps a mix of both in years ahead. Either way we are in for some pain and existing holders are left with some tough choices.