Reporting season idea

Mark Tobin

Coffee Microcaps

Reporting season idea! Microcap CentrePoint Alliance CAF: ASX Mkt Cap $68mil, $21mil in cash, no corporate debt, my estimated ex-cash P/E of 7.7 FY15 with anticipated very strong growth in FY15. They just restarted dividends and have $28.9mil of franking credits with dividends to be a focus going forward. They have two main businesses. A premium funding business growing very strongly and a wealth management arm which looks to have stabilised after a tough few years. They recently increased their facility for the premium funding business by 30% and on better terms. I assume to meet demand. The wealth management business seems to have turned a corner but it still faces some legacy claims issues. Claims though do appear to be tailing off and this business has been refocused and looking for growth. They have a large bank of tax loss both capital and revenue. An improving balance sheet thats starting to look attractive in my view to potential acquirers. Low P/E, solid cash on the balance sheet and they looked to have turned a corner. Interesting and could surprise

Mark Tobin
Coffee Microcaps

I focus on ASX listed microcap and nanocap​ stocks which is​ anything from $10mil to $300mil market cap and everything​ in between. This truly​ is the under-researched​ part of the ASX. My hope is to bring you interesting microcap stocks and news.

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