Agreed that their guidance could have been a lot more helpful....

Agreed that their guidance could have been a lot more helpful.

2nd half EBITDA was $7m! It's up to you each investor to make their own assessment but a lot of the Amortisation can come out of the figures for mine. Many other companies aren't shy about presenting an NPATA figure.

They have guided to 'increased financial metrics' for next year including EBITDA. If you conservativaly assume an EBITDA of $12m then the depreciation is less than $500k and the interest costs for this year will be well under $1m (I can't see there being any one off costs - all they have to do is keep paying it off each month at $600k per month). They will be net cash positive by Christmas.

That leaves you with $10.5m in likely cashflow (give or take for working cap adjustments).

I prefer to apply the full 30% tax rate to this figure to get $7-7.5m NPATA (other companies only apply the tax rate to the post amortisation figure then add back the full amortisation but this is cheating - my way gives an insight into the NPAT figure once all the intangibles are written down).

So for FY18 they are growing, more diversified than they once were and are in effect guiding to NPATA eps of over 3cps and will likely end the year with around $5m net cash (all with solid upside - remembering they have generally been conservative in their guidance for most of this year).

I get plenty wrong of course but the last time i was this bullish on a stock was when i was on this site trying to convince others that BIG was a good by at 15c (......i really shouldn't have sold at 45c but that's another story).