I figure that is $100 mill revenue yearly from now. Plus more growth to come - this growth is a amazing.
If margin is 10% that is $10mill Net Profit and with 1billion shares is 1 cents EPS
at a p/e of 15 is 15c.
Really have no idea about their potential margins for profit as they had 17.1Mill outflow(working capital) for 16.9 mill inflow.
"Continuing growth of the energy business also led to increased working capital requirements as customers are transferred"
Don't know how to value this company otherwise- surely they should make a profit sometime in the future
after these one off expenses (transfer of customers) cease.
(from SXT presentation) Either way there is 20 energy retailers and if they get 1/20th or 5% of the National Electricity market of $37Billion and 200,000GW- that 5% is 10,000 GW or 2Billion in revenue
So that is their potential market - maybe
if $2 billion revenue and margin is 5%- that is $100mill Net profit or 10cents EPS at p/e of 15 is $1.50
SOO if this company soon makes a decent %margin profit is it a great buy.
Have contacted them in their web contact and no reply yet.
Need to know when they are going to turn a profit and at what margin.
GOE Price at posting:
3.1¢ Sentiment: Hold Disclosure: Held
