call me dumb , page-4

Granted the company is not perfect, previous management of the company has been less than spectacular. Though, with current management in place for over 12 months, and networks services being disposed of in March 08(along with associated baggage) it takes time for management to brake from the shackles ... the question is how much time.

When investing in stocks with market caps below AUD100m, so much hinges on the integrity of management. Clearly with management having stumped up substanial sums by way of the Cnotes, to me this bodes well.

Though time is of the essence...

The figures have been posted previously by others and myself.

If Beam was a stand alone business for the enitre 07/08 Financial Year I have the profit would have been in the vicininty of $1m- $1.3m. The accounts a quite messey and therefore difficult to calculate the exact figure.

My thoughts are that with a 20+% growth in sales the 08/09 profit will be at least $1.5- $2m.

If you use a p/e of say 8-12 for 07/08. Based on a p/e of 8 would equate to a market cap of $8m, on a p/e of 12 equate to $12m market cap, this is based on a profit of $1m. If that was $1.3m profit this equates to a range between $10.4 and $15.6m. Then use a mid point valuation of say of $11.8m.

If as I expect that company is taregting a 20+% growth in revenue for 08/09 which leads to a profit of $1.5-$2m using the same p/e 8-12 this would equate to a mid point market cap of $20m.

Granted the market will want to see a minimum of 2-3 qtrs of growth without the noise of a loss making division. Which is why I have used mid point valuations.

For a growth micro cap stock I would have thought a p/e 12 would be considered cheap (best to be conservative in the current market climate)

Based on a share price of $0.01 and market cap is $6.1m for a market cap of $20m the share price would need to be $0.032.

This is just my back of the envelope figures.

Hope this rough calculation assists.

D: I own

Cheers

Clever1