I bought 70,000 shares of ISO Team at a share price of 41 cents for a catalyst play. My previous catalyst play were for Noel Gifts and more recently Spackman and they have done considerably well. I hope this turns out equally good. Still, the risks are always pertinent there.
The valuation based on TTM isn’t actually cheap but I’ve always felt that positive earnings expectations will propel the company to be re-rated upwards, with an even higher valuations. Based on the FY16 TTM, the EPS for the company is at 3.2 cents. Based on the current share price, this means that it is trading at a PER of 12.8x.
In any case, here are my quick observations for the company (since this is a catalyst play, I won’t be doing a full case analysis on the company).
1.) As mentioned above, valuation based on TTM isn’t …