great acquisiting, page-11

Hi,
When one takes into account earnings yield , it is the PE that you calculate that from 1/PE *100.
I prefer EV/EBITDA as a better measure .
Note that the company began the year with about 4 mill in equity and ended with 10 mill with a bit coming from the raising. 6 mill of 10 mill equity is cash...that 0.25 cents per share 60% of book value. I like That! They are cash flow positive and have completed their first acquisition expected to deliver approx 600,000 npat to bottom line the coming year.
I agree with you that this is a growth company and with a ROE of 47 , the market may rate this on a higher PE.
Moreover on a technical basis this is a buy ....break of 2 after long consolidation, Flag pattern formed and breakaway gap most likely is what we saw today.
My target 2.80 ............Lets see how this plays out over next 6 months.
Good luck