RE: AXX price forecast $2.00
The $2 target seems very reasonable for the short term, perhaps even conservative. Longer term I am thinking much, much, higher. The company has spent $150m on network development over the past 5 years. Current EV is about $100m with debt and cash pretty much equal. Share count really hasn't changed that much since 2007 when they started investing in Europe, so they have built interests in these other networks without having to dilute shareholders or take on onerous debt. If they have spent their money wisely and these networks are actually needed and not run as “non profits”, one would think that over the next couple of years we should start to see some significant improvements in consolidated EBITDA. If France can become as profitable as Alberta over the next couple of years, and Singapore can continue to grow at the tremendous pace it has been, why couldn't they generate $50m of EBITDA annually by the end of FY2014? Maybe I am still being to ambitous but I think a $5 share price is doable by the end of 2014, especially if they started to return some cash to shareholders rather than building networks elsewhere. (Which is probably asking too much, it seems many companies would rather spend money than distribute it to shareholders. And the fact that Art Price is currently paid such a hefty salary doesn't really make me feel confident that management will do right by shareholders in the future).