The key reason the share price was under 10 cents.
- A large subscriber base of an investment newsletter which the old management were aligning themselves with did a sell on the stock. - This in combination with the timing of the capital raising. - The market down turn itself - My view, lack of true media folks on the board, Neville, Paul, Josh Landau.. all with no media experience - The Board personally very close to CEO
Moving forward the positives:
- Media Focused Board - New CEO to come on board - Media Focused - Backing of Prime as key stake holder - Strategy revisited - Experience in Media - Dom will play a part moving forward in the business as he is bridges the gap between traditional media and digital, as prime didnt do a good job with Iprime in my books. - Cost savings with focused board - Consolidation of Group and costs - Proper Performance Management to be set - Clean Balance Sheet - Insto's will be attracted - Potential Dividends
I would be comfortable buying at these levels. The PE is way down considering the Debt levels currently, my personal view only, the stock should be around 23 cents.
Knowing majority shareholders entry into this stock ie Lachlan and other business owners who had taken equity rather than cash, is above 20 cents. So a full take over would need to be 35 - 40 cents a share in my view.
So for a stock which has had its security assured for future its a bargain in my eyes.
DES Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
