RE: Option shares14 Oct 2021 14:53
Hi TD . I had a quick look at all this . I generally understand your approach which is to see what the incremental Murata addition adds to the bottom line if most things stayed the same (apart from those changes you list as assumptions.) Not a bad approach But the first point I would make is that the numbers for profit etc are in aussie dollars?- the current
sterling exchange rate is 0.54 so that would roughly halve the resultant PE impact.. That then puts a bit more pressure on the assumptions. eg is it 15 OR is it 10 PE And then you have to assess what the base results are that you are adding this incremental lump on to . My own view is that the loss to be used is the proper reported loss ,not the "adjusted " loss . That clearly pushes down the "real eps " when you add in the lump of extra margin you calculated . So overall I think it is a fine attempt but frankly given the history of the company I am clearly not sure there will not be other issues that come along eg legal fees , or bad debts ,and most importantly whether they convert all these enquiries into significant profit. The fact that the outlook statement shows the company's focus is to essentially make a profit shows me that orofitabilty next year is not a done deal! Hope that helps