Pinned straw:
@Byrnesty agree with just about all of that, apart from your comments around valuation.
With a current share price of 0.30c I think they are trading around fair value. This is a P/S of 2.5x and isn't far from my DCF valuation of 0.28c. They are up more than 40% over the last 12 months -- I feel they were far more attractive at 0.20c. That said I will not be picky -- this is one of my favourite businesses on the ASX -- an honest management team, self-funded growth/expansion, attractive ROI and a capital light business model. The latter is worth expanding on: a good portion of capex spend immediately starts paying for itself provided they select attractive sites to roll out their equipment. Not many businesses can say that they typically pay back initial capex costs one year or so following an equipment rollout.
Unfortunately this isn't the unknown little business it once was. They were criticised/written off in many circles due to having a not-so-good history but this perception appears less commonplace today. Their last few years have been stellar and the reality of that means the market -- at least a slightly higher portion of the market -- are starting to take notice. Hopefully this doesn't result in any changes from management -- should they continue to ignore the short-term focused institutional investors, analysts and the like I will be happy.
My forecasts for this week's report, excluding any impacts from the recent German acquisition: