Hi AllBelieve with a bit of a dip recently, it is still a good...

Hi All

Believe with a bit of a dip recently, it is still a good time to Buy Coffey International. The stock has risen from a recent low of 38 cents to above 60 cents.

Coffey International have 239,260,027 shares on issue.

The expected EBITDA is $45 Million. Against the current Market Capitalisation of $146 Million, that is 3.24 times EBITDA.
Interest Expense @9% on $150 Million equals $13.5 Million
Depreciation on $20 Million in Assests equals $2 Million

Earnings after Depreciation and Interest equals $29.5 Million
Tax @ 30% on $29.5 Million equals $8.85 Million, therefore earnings availabe for dividend payments is $20.65 Million.

Against the current Market Capitalisation of $146 Million, that is 7.07 times earnings.

This is still an undervaluation of this stock based on the current earnings ratio of the market of 10 times. Market Cap of ten times earnings is $206.5 Million. Divide this by current shares on issue mean that current share price, based on ten times earnings is around $0.86 in the short term.

There is still a bit of room if you want to buy into this stock for a long term investment.

Best of Luck
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