Need to look at profits, not revenue. And we have only seen CF's so far, in any event.
SFG was profitable (hopefully will continue to be so, Net revenues for FY15 forecast of $6m / EBIT of $2m)
MWS has never been profitable, and in its current form was unlikely to ever be.
Thus the merger ratios. A profitable business will always be far more valuable than an unprofitable business, thus the IER saying this transaction was fair
If combined they can do $2m EBIT and growing , then $8m will be very cheap.
If they do $1m EBIT, $8m is fair to cheap
If they make a loss then $8m will be expensive
So need to see what the numbers are ultimately ....alternatively, take a punt that a business with a profit track record, with a growing business, continues to grow its profits.....but be prepared to take a hit if this is a big SFG stitch up
SEQ Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
