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


2 topics

Mark Tobin
Analyst
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.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment