ASC 6.67% 1.6¢ limited


  1. 632 Posts.
    What The ..... can anyone understand the market at all?Do we have any hope whatsover?Why bother making money if the market just keeps knocking you down for no reason.
    Interesting post picked from another place I think from a NZ geezer:

    Well, what an extraordinary reaction to another fantastic result.

    Forget the profit forecasts. Receipts from customers hit $42m for the quarter, up from $32m for the previous quarter, and $22m from the quarter before that.

    This is extrordinary growth. Any company that can growth 31% in one quarter deserves close attention.

    The market obviously still subscribes a very high-risk profile to this company - how else can you explain this crazy valuation. The pessimism is infathomable.

    Let me paint you a picture.

    At $0.31, ASC's 305m shares are capitalised at $94.5m. As of 30/06/02, they had a cash balance of $17.5m and no debt, so the market is currently valuing ASC's future cashflows from operations at $94.5m - $17.5m = $77m.

    To put that in perspective, ASC just had $6.4m positive operating cashflow for the QUARTER. Simply mathematics shows that $77m / $6.3m = 12.2. Based on ASC's current cashflows, they could have their current market capitalisation in cash in just 12 quarters, or 3 years.

    The market must be foreseeing a total demise in their businesss. But based on current results, if anything they look more likely to continue growing at remarkable rates than completely collapse.

    And all this isn't to mention the possibility of another lucrative acquisition with the mounting cash pile. The acquisition of Today Success last year turned the company around and has already paid for itself. Who knows what other positive NPV prospects may be luming in the current environment.

    This stock is very low risk compared to its potential return.

    Those are my opinions
    Dimebag (holds ASC ords)
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Currently unlisted public company.

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