Already 50% increase in revenue secured (365m) for the current financial year, with a capacity to handle 1000m in revenue. My only snag would be the liquidity factor of the share, but at a forward PE of 4-5 and a strong balance sheet, the value should come through in a year or two.
If you look at the previous revenue breakdown a significant portion comes from government spending. I agree with the BEE issue as well. The CEO has outlined this as a top priority, but who knows I guess.. The bottom line for me is that because of the known secured increases in revenue (similar to Sanyati), there is less risk and uncertainty involved. Additionally on such low PE ratios to me it only makes sense. And john please comment constructively next time.
This business was a one man CC prior to converting to a LTD and listing. They did not have an acccurate fixed asset register! They are slowly starting to employ the right people to take the company from its historic CC image/status to a potentail ALTX jewel. Bare in mind, sentiment with small caps has been poor due to so many of them failing to meet forecasts(SA French,Placecol etc). Markets are so volatile that people don't want to invest in the riskier sectors like smallcaps but would rather invest in blue-chip like SOL,IMP,ANG (bad examples but Im sure u get my point)