jimmy
Thanks for your input.
You neglect to condiser the big impact on costs a cut in licencing fees will generate and therefore an increase in cash flow , debt reduction and NPAT. You are also looking at a business that Is restricted in its ability to diversifyy and grow from legislation which can also change in the near future.
The way I look at it is I assume a reduction in fees that takes NPAT to the high 20s -low 30s and model that with a 7% decline annually. The terminal value of the business is far higher higher than the EV that assumes no border legislative change . Note I include the dividend received in the holding investment case
To quote one of my favourite lines
There are No bad assets , just bad prices
PRT Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
