Are you suggesting that things will get worse for NTC? Is this based solely on the potential strengthening of the AUD? Have you considered the increased revenue coming from domestic sources (NBN, South East Water and Cubic), I would expect this would mitigate the forex exposure.
If you look at the results and previous guidance you should see that NTC is heading for a 2011/2012 EBITDA of $5M, and I estimate we should see about $2M in EBIT, meaning the share price is only 6 times earnings.
You might think things are dim or drim (care to explain why in detail?) but the company continues to quote:
"NetComm Wireless’ outlook for forward orders is now at the highest level in its history. Most of these orders commence delivery in 2012/13."
Could there be a surprise later this year when NTC delivers its 2012/2013 guidance? Hmm, I am betting so.
NTC Price at posting:
11.0¢ Sentiment: None Disclosure: Held
