time to buy more

Hidden within the quarterly today was almost an upgrade to the forecasts the company made last year.

At the Company’s AGM held on 21 October 2013, the following guidance was provided for 2014:

Revenue $18 million - $19 million
EBITDA $1.7 million - $2.0 million


The guidance EXCLUDED the contributions anticipated from the acquisition of LR Instruments & Richards Medical.

The hidden gem was no change to the forecast PLUS

'The integration of LR Instruments & Richards Medical is progressing ABOVE expectations '


After a very large proportional raise at 0.37c the stock has pulled back from close to 0.50c those wanting a stag have sold it down 0.29c

At the time of the purchase the company stated the acquisition would be earnings positive .

Confirmation there has been synergies and LR is going better than anticipated should see instos top up, brokers write a few reports and buyers return

Would expect to see 40c come June , I base this on expecting at least $2.5m EBIT with an annual dividend of 1.5c .

Double digit revenue and EBIT Growth with dividends at just under 5% fully franked at this price wont last long in my view

Time to push the button cakes