HI AFD,
You make some very interesting points.
TGIF, Something nice about the last day of the week.You will be able to forget about the AFD nonsense, have a few drinks and dream about the really exciting things that are coming up. I don't find talk about take overs, selling 20% of VMT for $25m or even dual listings very exciting. I do get very excited about all the good things that all the good folks who are driving the business agenda are achieving and the growth that has happened in VMT share price over the last 5 years.
Your idea of using the $25m to buy back shares is a good one. You would IMO have more chance of people, who are hanging tightly onto their VMT shares, giving up Wine Women and Song than getting them to give up 20% of VMT for $25m. The odds would improve the lower you dropped the percentage. Interestingly at $3 a share you would only need 3% of shareholders to part with their gems to pull it off. Thats possible but would kick the MC up to $850m which is where it should be given the growth in earnings. That's just a whisker short of the market cap of the 200th biggest company on the ASX so very close to getting us into the top 200 index which would probably be an ideal milestone for to make a dual listing worth considering.
Whilst there is plenty of opposition to accepting that the current low PE ratio is market sentiment driven by a series of Black Swan world events its pretty obvious that the share price has been driven by a period of Red Ink events. The conspiracy theories that management is deliberately trying to hold the share price down so they can buy us out is nonsense. The only way they can do that is to get 90% of shareholders to accept their buyout offer which is whats necessary to trigger the compulsory buyout provision to get the rest. They have Buckleys chance of getting 90%. without offering a massive multi-bag premium to the current price.
Would our Chief Marketing Officer be dropping hints about 120,000 units being an aspirational sales target next year if there was a hold it down strategy ion action?
Would our industry legend advisor to the board be talking about a NASDAQ listing ambition if he was trying to sneak up on us?
The markets have been undeniable smashed since covid hit followed by all the other stuff.
Its interesting to see how VMT has performed in relation to the Australian Share market indices over the last 5 years whilst following its current business plan.
Its pretty obvious on the evidence that it has performed exceptionally well in comparison to the dismal performance of a diversified portfolio because it has consistently doubled profits in these difficult times.
This year has been a disaster with all the rising interest rates driving investors out of equities to safer havens.
Good to share price jump from 32 cents in June to 40c and rising.
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