@zhanginu : "PPI well remain a drag for some time though." I...

@zhanginu :

"PPI well remain a drag for some time though."

I suspect the market is big and ugly and smart enough to be able to isolate the PPI effects.


"So my q is where do u see fair value? 1x book or 1.5x ?There's no question in my mind this is still undervalued but I haven't worked out how much margin I've got for error at 0.6-0.7 times p/b and whether I should allocate more funds. Interested to get your view Adam."

I am a bit of a slow thinking dullard, so it will take me a while to digest the results and to study the notes to the accounts, as well as to contemplate what was articulated by management on the webcast, and then to process all these new pieces of the CYB investment jigsaw puzzle into the financial model I maintain for the company.

But, what I can say with some certainty is that, whatever positive valuation framework I may have had for the stock before this debut result, my revised valuation will be enhanced in the light of the new information that was revealed with yesterday's result.

But as a starting point of valuation reference, you might find the following of some use, in the knowledge that whatever my revised valuation scenarios turn out to be, they will be an enhancement of my thinking on that date:

http://hotcopper.com.au/threads/another-misunderstood-spin-off.2719708/#post-17243320


Adam