Zero Net Enterprise valueAs I said in my previous post, the number of shares including the new ones issued for the Connectware overhang are 12.5 million. At 90 cents thats $ 11.25 million market cap. They have approximately this amount in cash, so the net enterprise value is zero! I think that this company with its legacy support business, the parking stuff and the new Expresso is worth a few pennies. So a stock value of $1.25 to $1.50 which is an additional .35 to 60 cents is only $4.4 million to $7.5 million. The problem this stock faces is that nobody knows anything about it and with the revenue shrinking for the last three years nobody believes in the opportunity. The expresso story is not well told, so why would anybody buy this stock!?
I will tell you why! A day will come (in 1 year or even 2 years) when somebody gets interested in the story or its assets and then you maybe looking at a $2-3 stock. Long term this a good opportunity as it is trading at extremely low valuations. Buy some, put away in your RRSP and wait for time to do the trick.