EQT takeover target22 May 2019 21:51
This will be below the educational grades of 99% of this board but for those that are smart they will understand what i am about to say....
Eqt is a takeover target here for me.....
Why???? Eqtec is very cheap to someone looking to buy out a fast growing waste to energy company like eqtec with a giant pipeline of cash and deals coming into it. I dont care what anyone says ultimately the money will come rolling into eqtec and someone looking to buy eqtec out...now is the cheapest time to do so with revenues expected to be 100 million + alone collectively from Phoniex and Billingham.
They could buy the company for 2p and still have upside of 11p on future price earnings or double that as business flows in the market will price that into earning potential. These bafoons like dip stick dont realise that most if not all tech firms never make any money at all yet trade on multiples of 20 × 30 × ....its all about future cash flow forecasts...thats how someone buying eqt would view it.
11p target. Explained.
1. Price per share = PE ratio X earnings per share
2. we make post tax earnings of 30,000,000 for the year say from from one contract
3. we now have 1,804,744,243 shares in issuance (per RNS 29/10/18)
4. That gives us earnings per share of .0166
5. If we have a PE ratio of 7 to be conservative like Covanta
6. Price per share = PE ratio X Earnings per share
7. Price per share = 7 X 0.0166 = 0.1163 = 11.6p
And that is from one 100 m deal. Phoniex and Billingham alone are more than double this figure collrlectively
Look at peers
EQTEC 17 MILLION market cap only versus
Covanta - $1.76 Billion
MVV Energie - $1.67 Billion
Grandblue Environment Co. Ltd - $1.4 Billion
GCL Poly - $1.12 Billion
China Everbright - $0.82 Billion
Hitachi Zosen Inova AG - $0.518 Billion
Make no mistake....Eqtec is super super cheap at these levels opens your eyes and buy in before the chance is gone.
Takeover could happen anytime....just a thought.