Ann: Daily share buy-back notice - Appendix 3E , page-8

re: Ann: Daily share buy-back notice - Append... Been quiet about this one until I finished buying..

What we seem to have here is a company, in the health-care space, producing circa 4 million cash a year, with almost no debt, trading at a market cap of only around $20 million.

I like that the reports are very easy to read, the cash flow exceeds the profit, and the current assets far outweigh any liabilities. 4 million cash generated on shareholder equity of circa 12 million would give a cash-ROE of around 30%.

On top of that, the director owns around 30% of the shares, so has plenty of skin in the game.

Further, the company have been buying back shares consistently over the last many months.. So they must be confident with the upscoming results. (still buying back as recent as yesterday - and obviously having no problems getting their hands on the cash to do so.)

EBITDA seems to be roughly approximating the cash flow, and for the 1st quarter till 31 October this was still around a bout $1 million.

I have spoken with the company secretary, who says the company still intends to keep the debt levels down and maintain the strong cash flow now they have divested there underperforming assets from last year.

Only reason I can guess this is so cheap is that it is undiscovered, I can't find any articles or research on this anywhere..

The only negatives I can think of are high competition in this space, but with an ageing population, I am comfortable that demand should continue to increase into the future.

All in my opinion.. Do your own research!