Market Cap: 37m * 15cDebt: $2.3millionCash:...

Market Cap: 37m * 15c
Debt: $2.3million
Cash: $1.8million
Enterprise Value: $7.8million - $1.8million=$6million.
Free Cash Flow: $2.2million

So you recoup your investment in IPX within 3 years.

This snapshot of IPX does not take into account the $16million contract win with WilsonHTM. Which is the reason I invested in IPX to begin with. In the annual report they stated that revenues from this project would be starting in first quarter FY11. If we assume equal distribution of revenue across the life of the contract that means $3million a year. In a presentation they stated that business on demand operates at 50% margin. For the sake of being conservative lets use 30% FCF from the project revenues a year. Interesting to note that FCF is higher than EBITDA in the annual report so I think this is a valid and conservative assumption.

That means an extra $1million a year in FCF a year. Or $3million a year in total, all of a sudden the pay back period drops within 2 years. This excludes any further growth.

From a charting point of view, noticing a bit of life creeping into the volume for IPX. Still fill we need a volume spike, to shake out this large seller that has been keeping a lid on the share price.

I keep adding drips and drabs at these prices. Happy to wait and see how this story unfolds.