OSP 0.00% 20.0¢ osprey medical inc

just keeps tanking., page-2

  1. 7,026 Posts.
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    Yep at 6.3c = A$27.2 Mil MC with A$28.7 Mil in cash at 31st March 2019 & no debt !!.

    Assume maybe A$5 Mil of that used this quarter (they used approx A$7 Mil last quarter BUT a % of that was staff bonuses for 2018 so assume maybe A$5 Mil this quarter), approx A$1.2 Mil gross revenue at say 30% margin = approx A$0.4 Mil profit, so A$5 Mil - A$0.4 Mil = A$4.6 Mil cash burn, so A$28.7 Mil - A$4.6Mil = A$24.1 Mil

    That gives an EV of approx A$27.2 - A$24.1 = A$3.1 @ 6.3c - wow

    IMO the revenues will be slightly better as they have improved every quarter for a LONG time now & costs maybe below A$4.6Mil. Very possible OSP will be around EV of A$2 Mil. Obviously someone else thinks otherwise, or maybe they just aren't that good at maths ?

    It seems an insanely low valuation to me - but hey what would I know, I topped up at 7.3c & 7.1c before the EOFY thinking it would uptick after that !!

    With approx A$24 Mil in cash & approx A$4.5Mil cash burn per quarter, they have approx 5 quarters of cash left. Seems unlikely that they can not get cash flow positive before then.

    Anyway we will know on Monday how this quarter has gone so only Friday to buy more if I am game.

    https://hotcopper.com.au/data/attachments/1633/1633205-b810daeb808db4bde5ac9d14002b1547.jpg
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