Very interesting reading, thanks Joe. What worries me is where the short term growth will come from. I struggle to see where demand will come from at currently levels if market cap is stagnant in the short term. Sure there's demand for long term holds for div plays but what's in it for growth opportunity investors?
I am intrigued about takeover opportunities though, although I see it two ways; sure, trading below NAV makes it a target and a takeover would surely be at a cost of substantially more than current capitalisation considering volume weighted averages over the last few months as well as ERM's good liquid cash position - but I also think they would be smart to use that cash to bolster their asset base as well. Nothing helps a P/E ratio more than the promise of future growth and expansion, and management are under pressure to perform now. It will be interesting to see how this plays out....
EPW Price at posting:
$1.10 Sentiment: None Disclosure: Held
