Below are some extracts from my previous hot copper posts . Question in my mind is why the management persists on relegating the stock to a penny dreadful status? When will earnings guidance be provided? Can the shareholders see the brief provided to the new financiers before they made their offer? Can we also see the brief provided to Grant Thornton for independent valuation of the IP? Given the IP significance should several independent valuations take place just as one would do when valuing real estate? Can this also be done for earnings guidance?
Extract 1 December 15 2018 . “Using $14.9 million forecast earning* divided by shares issued of 1.375596 billion produces an earnings per share of approx 1.09 cents.
Price on December 14, 2018 for a Netlinkz share at 2.8 cents per share. P/E ratio using these figures is 2.56880734. Looking at various internet sites USA tech companies have an average P/E ratio of 20.
Investopedia states newer companies with high growth prospects generally command higher P/E’s since current earnings are generally small as the company spends money to grow- which then leads them to be quite profitable in the future.
A twenty times P/E would produce a share price of 21.8 cents and a ten times P/E ratio a share price of 10.9 cents.
A P/E of five times produces a share price of 5.4 cents.
One of Warren Buffet’s criteria for investment such as with new technology companies is whether they have patents and how protective is the “patent moat”? Buffet looks for moats which provide a barrier making it difficult for a competitor to invade and steal the business.
Netlinkz’s patents are well designed and cover the field.
IMO their patents and the quality of their software development give Netlinkz a sustainable competitive advantage.”
Note Netlinkz itself has not provided any financial forecasts to date for shareholders, the $14.9 million figure was derived from Netlinkz’s China reseller statement.
Extract 2 Jan 18 2019. Forecasted earnings guidance and inclusion in market index would be helpful. As would a cogent strategic communication plan for the Australian market.
Extract 3 Jan 21 2019. On the earnings forecast front can we see an independent advice to inform the market and start to finally return value to the shareholders? Flying blind for investment decisions is ridiculous and seriously prejudices shareholders.
The Netlinkz product suite does not deserve penny dreadful status!
NET Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
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