Ann: Nexcode cash receipts increase cash position, page-11

re: Ann: Nexcode cash receipts increase cash ...
I see ETC made the AFR today in an article titled "Small caps to watch for big returns"

I don't have a link to the article but the key points are

- the market has been unsure whether to take mgmts $48m NPAT guidance for the year seriously as it is a big jump from the previous year

- but there are signs the company is winning over skeptics having risen 830% in 12 weks

- if the company hits profit guidance it is only trading at 4-5 times earnings

- with most govts grappling with issues of higher security ETC is in a favourable position to win new contracts - says the CIO of Atoms funds mgmt David Shearwood.

- Shearwood believes the ETC's NPAT could double in 2009-10.

- although he warns one of the key risks is delays in payments from clients is a problem

- Bull Case - some experts think the stock could double over the next year. looks cheap if mgmts earnings guidelines are to be believed.

- Bear Case - Lumpy cash flows. Risk of delayed payments. Outlook also hinges on contract wins and sometimes in emerging countries with higher political risks.

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Over and out.

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