Overhauled and undervalued . Have been trying to get my head...

Overhauled and undervalued .


Have been trying to get my head around what the market announcements last week by Netlinkz’s China operations might mean. Sure we will need more time, information and sales to develop however a forecast of $14.9 Aust million revenue for a full year of sales in the initial one province gives a first cut basis to crunch some preliminary numbers.

Using $14.9 million forecast earning divided by shares issued of 1.375596 billion produces an earnings per share of approx 1.09 cents.

Price on December 14, 2018 for a Netlinkz share at 2.8 cents per share. P/E ratio using these figures is 2.56880734. Looking at various internet sites USA tech companies have an average P/E ratio of 20. Investopedia states newer companies with high growth prospects generally command higher P/E’s since current earnings are generally small as the company spends money to grow- which then leads them to be quite profitable in the future.


A twenty times P/E would produce a share price of 21.8 cents and a ten times P/E ratio a share price of 10.9 cents.

A P/E of five times produces a share price of 5.4 cents.


One of Warren Buffet’s criteria for investment such as with new technology companies is whether they have patents and how protective is the “patent moat”? Buffet looks for moats which provide a barrier making it difficult for a competitor to invade and steal the business.

Netlinkz’s patents are well designed and cover the field.


IMO their patents and the quality of their software development give Netlinkz a sustainable competitive advantage.

I appreciate it is early days but in an approximate way these early parameters indicate a promising future for the share price. Particularly with a market whose appetite will grow as it discovers the usefulness of the Netlinkz product .