Valaution, page-2

A broker research report from May 2019 has a target valuation of 38 cents per share and a strategic valuation of 81 cents per share. The methodology used is DCF with an assumed market share in Australia of 1.5% in 10-years of a $2 trillion market.

In my view the company has achieved a lot in the past 12 months, but it must continue to innovate and expand the funds utilised by its platform (which it seems well positioned to do). Ultimately, success needs to be reflected in the share price, which at 21.5 cents is only slightly above the price of 20 cents per share when it raised $10 million in September last year.

Of the $500k of the CEO's remuneration some $214k was performance based. Again, an assessment is subjective. I am satisfied with the business results achieved in the past 12 months, but I am not satisfied with how this has been reflected in the share price. Whereas a lot has been achieved operationally, and the company has indicated it is poised to make more announcements soon, perhaps more effort should be made to communicate with the market to ensure that its successes are better reflected in the share price. (Having said that it traded towards 30 cents but declined on thin volume in the tepid markets, and if a reasonably large buyer wanted to buy on market, that would likely push the price considerably higher due to the stock being tightly held).