The scary thing is, this could be any trading anywhere from 30c to $2.00 as internet growth companies are all treated all very differently. FLN for example with MC of $550M has substantial growth, is global and has $30M in revenues. 1PG is another global phenomenon with a MC of $420M but on $0 revenues at this stage. On the other side of the ledger we have MBE with MC of $76M, $30M in revenues and $3M NPAT. So its difficult to say where UBN belongs but don't think it's a $200M company at this stage. Maybe ACX is sort of the most closely related company and it's MC is $600M on $82M in revenues and $11M NPAT. So if we extrapolate the multiples from ACX and apply to UBN, then UBN should be ~40c. Don't think that will happen and yes I'm really clutching at straws as both companies are very different but you can get the gist that UBN can go much lower.
UBN Price at posting:
87.0¢ Sentiment: None Disclosure: Not Held
