New Leaf - Morgans Valuation and Growth, page-2

The sentiment has definitely turned in favour of an investment case in Shine. Most of the media reports about SHJ at the moment are positive and we should start to see interest in buying continue to push this up overall.

I came up with a valuation of $1.15 based only on last year's cashflow.

The company is in a much better position to grow rather than Slater's who are still cutting away at their costs. Doing so will ensure negative growth in their business for a while so it seems reasonable to assume that their market share will be distributed among other service providers including MB and SHJ.

It may be possible to value Shine higher than $1.15. I think we'll only really know after the implementation of AASB15 when the earnings reporting (mainly expenses) should better match cashflow, timing of different payments aside.