Thanks for the update antistar, Fosters seemed to have...

Thanks for the update antistar, Fosters seemed to have republished on 10 July with a reduced price target of $0.45 so potentially refined some of their assumptions.

I never saw the previous research report but in the latest one there are some interesting observations:
1. an estimate of 92,600 paying subscribers (excluding the underwritten payments) to breakeven on a cost base of $20 million and 2 apps per user.
2. Assumes a $15 million raise in FY18, although assumes September options wont be exercised as currently out of the money.
3. $0.45 price target is based on 12.5% penetration of current SME base (2 million) available after two years, it does not take into account any new contract wins or better than expected penetration of Barclays SME base. The reports says that if the SME base was tripled (i.e. triggered by a few new contract wins), under the same assumptions, a $1.11 valuation could be derived - the key here I think is the potential leverage of 9SP.

And I realise that the company is very early stage and therefore I only consider Fosters forecasts as more of a guide to help gain some context of potential outcomes.

Food for thought anyway. Definitely looking forward to the quarterly report to hopefully instil some faith in the slumping share price.