Currently at 2cps. Market cap $5.2m. Sales around $13m. Going to...

Currently at 2cps. Market cap $5.2m. Sales around $13m. Going to produce normalised EBIT around $1.4m (will be some impairment of goodwill - might be reported EBIT of $1.0m). Should translate to reported profit of $0.7m-$1.0m, so P/E about 5-8. In addition, has $3.7m of cash and no debt, plus positive free cashflow in last qtrly of $.37m. This all makes LRG very cheap and less risky than others at this kind of silly market cap.

Going forward, the C4i business (purchased from RDF a few years back) reported a $9m/3yr contract in Nov08 which was due to start delivery mid-09, plus recently reported (May/June) a number of other contracts totalling $2.5m, so should have a bit of work going into next 6 months.

Chart is in an uptrend but needs to break out above 2.3cps on volume to get any real interest. Still very illiquid and major management shareholder holds over 40%, so not a takeover prospect at this point. If it runs, there's room to take market cap to around $15m on current sales/earnings, i.e. +200% from here.

Different management and a different core business to that which I followed on here a few years ago. But the risk is still high.