Its interesting, but their near term forward earnings estimates seem to be pretty extravagant and discounting a terminal value like that in a risky internet based business at only 13% per annum is simply an error. No other way of looking at it. There's no way known any investor would accept a return of 13% on holding this for 10+ years at a near tem shareprice of 36c, yet that's what they are basing their calculations on. 12c could well be fair but I'd say you'd be mad to pay 36c, so does the market. These paid for reports always give a vast overestimate, thats standard.
But it seems a good play given LAAs improving performance and possibly worth adding a small amount to a diversified spec portfolio.
Even after today's boost the MC doesn't appear to be overly demanding.
I'll need to have a more detailed look at their reports before committing anything, but it is interesting.
LAA Price at posting:
13.0¢ Sentiment: None Disclosure: Not Held
