Okay that makes sense. Yes it is a good target but I think that most long term holders are looking for north of $3.00 and above. I think the market has got it wrong. The value lies in a company able to work on lower margins and with nothing to lose. Origin and the like dont want to compete as they would lose a huge amount of profit. I dont think these guys will be bought unless by a player that doesnt have an existing base to protect.
Having a good business that is growing within a declining industry is a great thing to have. The existing businesses are finding it harder to hold onto their margins and volume and you are still growing.
The negative is that industry outlook is negative and that for many investors and asset managers is a big negative in their valuation.
EGO Price at posting:
0.6¢ Sentiment: None Disclosure: Held
EPW Price at posting:
$1.90 Sentiment: None Disclosure: Held
