Ann: Wins $8 million Road Lighting Contracts for Victorian Roads, page-3

Is it just me or is this stock ridiculously cheap right now with a Market Cap of $8M?

Going through the last report, there is debt to pay off, but:

- They're generating positive EBIT/DA after the paper writedowns and after paying debt
- $50M + income on which to improve profitability
- Add in the $8M just announced
- Can't see a great deal of difficulty maintaining a P/E 8 or even less
- They signalled revenue and profitability increase for FY2018 in their guidance
- Big contracts are naturally expected as Australia goes into infrastructure (and in our governments case, i.e. roads) building mode - more street-traffic lighting, more temporary works lighting
- As energy prices soar, capital cost of higher efficiency street lighting becomes more and more justifiable
- 52 wk hi/lo - currently sitting close to the 52 week low though not exactly a lot of stock trading or available


The bull case seems strong to me. The bear case appears priced in and IMHO, looks way oversold due to low interest.

A small divvy in FY2018 and this looks an easy double, potentially triple bagger in under 12 months.

Interested to hear the counter argument as I would like to understand the bear case better.