What is it worth?, page-7

Thanks Marvin - that is probably the most well written financial analysis I have read on HC in a long time - great reading for a Sunday morning.

If one of the key risks for CM8 is its debt, then I take the interest cover ratio as a reasonable proxy for that risk, and at 5.34x an interest bill of around 20% of earnings is pretty low risk.

If another key risk is the integration of Track, then only time will tell, however Track is already an established product with a demonstrated growth and trajectory.

As you explained so well, CM8 represents pretty good value at this price level. Does that mean the SP can't go lower? Well it did this week, and on the chart I see a 12 month low of 13.5 so I see that level as the downside risk chart-wise, but value-wise on the basis of your argument suggests the lower the SP the stronger the value case so buyers will step in more and more, thereby providing support against lower prices if it were to go that way in the short term.

Cheers, Sharks.