Nanocap ReverseCorp REF:ASX Mkt Cap $12mil, $6mil in cash, no debt, estimated ex-cash P/E of 3.4 with 20% growth FY15. They don't pay a dividend but they have $5mil of franking credits if they wish to restart paying dividends. However managements stated strategy currently is to focus on growth opportunities both organically and through acquisition. Two main businesses 1. 1800Reverse a telecommunications company focused on providing calls of last resort, allowing our customers to stay connected from out-of-credit prepaid mobiles on all major Australian mobile provider networks and pay phones. 68% of Rev's and the bulk of EBITDA 2. an online retail contact lens store. They own 65% and it contributes 22% of Rev's and approaching EBITDA break-even. It should soon start contributing to the group. This is dependent on growth and on investments to scale growth in the business, so maybe longer than expected. 3. Tri-Tel a loss making discontinued operation disposed off this year. With circa 50% of its mkt cap in cash, no debt and low P/E and growth options its interesting


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Mark Tobin

Not an upgrade James Marlay basically a continuation of 2H14 run rate into 1H15 but it is an improvement on the PCP. Even if they do the same in the 2H15 it will still be good growth in FY15 on FY14. This 1800 business is pretty stable, there are a few regulatory changes in the works but mgt have said they don't expect any major impacts. They are working on getting it running as efficiently and effectively as possible. This is a mature stable business and basically a cash cow. It helps to generate to cash to fund growth ops in my view.

James Marlay

Mark was the release on the 18th effectively a profit upgrade? The release also makes mention of some turnaround initiatives in the 1800 business - is this part of the business stable or facing challenges? Interesting little story