Bull case, page-14

The bull case:

# SHP were cashflow positive last quarter on $6 million of revenue. This is better than expected.
# They should be able to easily exceed $25 million over FY2016. Annualised performance of the June quarter is $24 million, and this doesn’t factor in the spike in sales in the Christmas quarter. On top of this, the online retail industry is predicted to grow.
# Online retailing is forecast to grow by 8-10% per annum (IBISworld forecast) over the next 5 years.
# Proposed government changes in GST and reduction in the threshold will help SHP, as overseas competitors would be avoiding GST at this time.
# SHP has $2.4 million in cash which will likely be used for an acquisition. As the operating cash position is likely to be positive or breakeven going forward.
# They also have access to an undrawn facility of $5.0 million which could assist in acquisitions.
# There is near term growth opportunities, such as toystore.com.au which grow the business with little capital requirements.
# Lorenzo Coppa presence on the board is also reassuring, as he clearly has experience in the industry.