A good post from .ADVFN12 Nov 2013 22:34
With credit to Stockologist. The post makes a lot of sense.
Stockologist
12 Nov'13 - 14:37 - 4898 of 4900 3 0
At 5p the Market Cap will be about £10m ?
Seems about right.
Get in a Company which is probably too small to IPO off it's own back yet say doing £1m (post-tax) profit on £10m turnover.
The shareholders in that Private business might have the Company valued at 10x in private funding rounds but looking at 20x in public market.
So to them their Company could be valued at either £10m or £20m
Add the tax shield if losses are allowable for offsetting profits and you could have a 25-50% uplift in valuation to say £15m-30m (private vs public)
Why not share some of that tax shield benefit with the Company providing you with access to the market and that valuable tax shield.
Job is a good un.
This could be one of the easiest ten baggers around. I like the fact it is in the same field of biofuels as CNEL which has been a recent winner. CNEL shareholders might see this as a decent switch. Maybe even a Company like Sunbird might see NEOS as a decent RTO candidate ?