take a look value investors, page-4

i been in (albeit with small amounts), since 13, then 7c.....only got in cos i was watching the sp yoyo b/n the mid-teens to about 10 ror 11c.....so thought that i would do some short-term trading.

then i began to compare the Quarterly Cash-flow reports, and realised that soon (within 6 months) - about 6 months ago, they would be in a position whereby they would have less debt than cash, and the cash position would value the company somewhere closer to the issue price of 20c .....

However, since then i have tried to complete some more indepth analysis;
- they say that 25,000 customers will make them breakeven.......and that their margins will be high due to their state -of-the-art billing system etcetc...
.....Martinplacesecurities.com reckons that their annual fixed costs are supposed to be around $4.5M. and margins are supposed to be between 12 to 17% (i think - dont' quote me on this part !!!)
So 25k customers to bring in about $30M annual revenue. As the consumers (households) would be about $1k each per yr, and some SMEs would bring in a few $1000 more per yr.
15% of $30M is $4.5M, which gives overall breakeven; as the fixed costs are supposed to b that amount.
[This is just my own thoughts trying to line up with what JGL and mpsecurities have said; as in fact their may be a slight loss or profit].

Either way, they've said that they are exceeding customer-growth targets, of which is supposed to reach 25k by Q12006.....I see no reason why if they pick up those customers over a 6mth period; they could not at least get another 15k by the end of 2006 winter (ie; Aug2006)..........So for about 40k customers giving about $48M rev @ 15% is $7.2M minus the $4.5M gives about $2.7M net profit. There is 88M shares on issue plus the new ones of 9.5M is just under 100M shares on issue. So $2.7M into 100M gives about $0.027 eps or 2.7c earning per share.......
@ 10pe that's an sp of 27c.
@ 15pe that's an sp of 40.5c
@ 20pe that's an sp of 54c
This would relate to about Aug2007 (if you used arbitrary rolling years from the point that they get those 40k customers)......and seeing that the markets usually are about 6 to 9 months ahead..... my overall price target for this baby is b/n 40 to 60c at end (calendar yr) 2006.