Greentrains is an issue in that it is currently holding back the value of CXG but will eventually enhance the SP. In their half yearly report CXG showed a NPAT of $2.1m and provided guidance that full year NPAT should be within 15% of 2008. 2008 NPAT was $23.8m so we should be looking at a NPAT for this half of around $18.5m and that is after financing costs (the financing costs for Greetrains would have to be in the order of $8m for this year). Current Market cap of CXG is around $35m at a share price of 30 cents. The two previous years dividends were 8.5 cps, that suggests without the Greentrains and their finance costs we would be looking at dividends in 08/09 similar to previous years which would suggest a share price closer to $1. Greentrains is of course also a significant asset that when realised will add further value to the company and further increase subsequent NPAT.
CXG Price at posting:
23.8¢ Sentiment: Hold Disclosure: Held
