So these $40 million dollar estimations, based of $100 per ct @ 400,000 ct,
Every $40 million equals 5c of the MUS share price, just to make this easy.
MUS would have had a PE of 4, at highs (20c) that's really good. 500% upside if that were the case.
But..
Lets try this again in reverse, MUS cleared $750,000 so you get to times NPAT by 10, $7.5 million plus 5 million in cash? 12.5 million.. nope not really,
But wait, there's more, MUS only keep 60% of profit, then we have not added tax,
$450,000 before tax. with $5 million cash EV @ $75 million is a premium.
Wait...
The market is forward thinking, there will be other auctions and this has got the be their worse auction of many to come, so there is upside but not at 10c.
I believe anything under 5c, investors will find value, cash is good, I wouldn't call this cash flow positive territory but EV of 30 million, with the thought that the next auction goes smoother and they actually make some money after costs and tax.
Good luck with this on the next auction.
MUS Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
