Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Cirrus Network -CNW. Last 4 years had positive earnings and decent ROE last FY. Gained good government contracts etc and yet the share price is not going anywhere! Is it possible that the share price is being back by too many share options, 102M vs 917M paid shares? Your thoughts please.
Hi Michael,
I’m not familiar with this $25m West Australian IT Infrastructure business but as we often say the share price usually tells the tale, in this case CNW has indeed gone nowhere for the last 2-years and we can do no more than put it into the too hard basket. Having a quick look at the financials shows solid growth in revenue i.e sales, but very low margins and only a tiny amount of free cash flow, plus of course, lots of options on issue never help.
From a risk / reward basis we could buy this “speccy” if it rallies to 4c then running stops below 3.4c which would amount to a 15% risk but its not one for us.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
