jamwolf...good comments and maybe $5M to $6M is more realistic only time will tell. However why would they set a $10M profit target then disapoint the market ? With the smaller but more profitable business model earnings are more predictable and less volatile. I think the new CFO has given an achievable target which they have calculated as the base profit on the new business model. Note NO GROWTH is factored iinto the model. When the model is proven and they consistent recurring revenues and the ability to pay dividends it becomes a fare more attractive takeover target
During 2012, the Group undertook a number of portfolio management actions within its insurance operations, including: • limiting aggregate exposures to natural perils; • improved capability in geographic risk rating, leading to reduced exposure to acute flood and bushfire risks; • the exiting of unprofitable lines; and • increasing premiums to bring loss ratios to acceptable levels. As a consequence, CIL’s insurance book is structurally more profitable.
CIX Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
