I am inclined to think that CPR is undervalued.Annual Report to...

I am inclined to think that CPR is undervalued.

Annual Report to shareholders Page 18

"For FY 2009 the Company should have recorded a positive
cash flow from operations of $9.2 million, instead of the
negative cash flow from operations of $5.5 million it has
reported, once the cash misappropriations over the year
of $14.7 million are adjusted for."


They further describe in the report that $38 million in savings have been implemented by the company (Page 16) of which $15m is yet to flow through and that the retail market grew by about 9.3% (Page 12) (although we are obviously yet to see how much of this growth has gone to CPR).

They have also implemented an online store which seems to be doing quite well. A quick search at alexa.com http://www.alexa.com/siteinfo/clivepeeters.com.au reveals that over the last 3 months the increase in traffic has been quite significant.

"Percent of global Internet users who visit clivepeters.com.au (yes they misspelled it on the site but clive peeters were smart enough to register clivepeters.com.au also):"

Yesterday 0.0016%
7 day avg 0.002%
1 month avg 0.00103%
3 month avg 0.00071%
3 month change 190%

If you look at this companies history it has made well upwards of $10m net profit p/y and in my opinion they will make at least this amount over the year.

That puts my estimates of their current PE at 7.75 on a historic PE average of 17.03.

Let’s assume a 12 PE and we get around 94 cents, at 15 we get ~$1.18 and surely this is a conservative estimate?

I am not even considering the fact that they will have a nice chunk of cash lying around at the end of this. That the properties themselves may be sold for more than expected. That their website has generated further income or that any of the refurbishments and other work have had any effect.

This seems like it has potential...

Anyone care to express another view?