Seven Aces Limited - Ordinary Shares ACEXF

RE:Interim FS

[JamJam123]

Wonderwon wrote: Well, they are released.
So, a net loss - not surprising.
What is interesting - they generate $1.5mm in rev but still can't generate any cash from operations? How is this possible? Lucky Bucks was awash in cashflow apparently. Say they paid 1mm in professional fees to get the deal done, they still don't have positive cash flow.
What is leftover for shareholders?  How do you make the shareprice move to 50 cents for instance? That would be a 100mm market cap..ten times top line?  25 times potential earnings?
Quantum only paid, what, 2 times top line for the 51% stake...that means Quantum would need $50mm in revenue from its stake to get ot a 50 cent share price.  Those are pie in the sky numbers as the scaling of the business is limited due to state laws and there is no differentiaion between the company's offering the VLTs.  They are all regulated.
One might ask, why not grow through acquisiton?  More dilution

it's a tough one, maybe they will run the price up, but I think it is a penny game. 

i Go to page 11 in md&a to see segment base cashflow.. Net income from LBI was1.1 million