ISIS

  1. 175 Posts.
    If the merger with AAV Australia goes through on October the new combined entity should be looking at a conservative Net Profit in the order of $10 Million this year. Based on the figures released to the market ISIS will have a market Cap of approx $30 million when shares are issued to the current owners of AAV (INVESTEC - one of the worlds largest investment groups). The directors of AAV are suggesting that ISIS should become profitable this year - this could increase the overall Net Profit result to $10m plus. ISIS will become the largest Broadcast / Television post production company in Australia with one of the largest DVD / VHS duplication plants, multiple Post production/Visual effects facilities in Sydney and Melbourne (with an effective monopoly in Melb) and various Outside Broadcast facilities that currently have major long term contracts with Channel 9 and 7.

    Isis currently has $22million in assets (11.5 cents per share) yet trades at just 5.4 cents !! The merged entity will be 74% owned by INVESTEC who have help turn AAV into the most profitable Duplication/post Facility in Australia since they purchased the company 4 years ago from FAIRFAX.

    Based on these conservative figures ISIS would be fair value trading at a PE in the order of 10 to 12 (similar to VILLAGE ROADSHOW) which would equate to a share price of 18 to 22 cents. My prediction that this stock will trade at 20 cents plus within 12 months.
 
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