December Quarter Trading Update + Video, page-20

If we annualise CM8's last quarter's underlying EBITDA of $2.6m and we assume CM8 was still trading at yesterday's closing price of 10c, that gives CM8 a current enterprise value/EBITDA ratio (EV/EBITDA) of around 3.

If CM8 does manage to pay off the convertible note by next Feb, as they say they will, without dipping into their existing cash of $5m, and if the share price is still sitting at 10c in a year's time,, that will give CM8 an EV/EBITDA of about 2 one year from now.

If that happens, Dom would probably love to take the company private!

CM8's other secret store of hidden value is the difference between their receivables and payables figure.

CM8 has low payables, but big receivables, because the Telcos take ages to pay over the money owing to CM8.

I have always wondered why a bank wouldn't lend CM8 money to cover this receivables-payables difference at a fair interest rate.

It's not as though the Telcos aren't going to pay up; they just choose to be slow payers, because they can.