Thursday, March 29, 2007

Nextnation (Don't write it off as useless)

Nextnation’s latest quarterly earnings per share for the period ended 31.1.07 of 2.5c are a 47% improvement of its previous corresponding period of 1.7c. Its revenue has improved by 60% to 28.217m from 17.592m.

Going on these figures on a conservative estimate, its annual earnings per share will not be less than 8.8c.

The company has a clean balance sheet with no borrowings. Earnings are on an upward bias. At the present price of 58c per share, the PE works out to be 6.59. This is much lower when compared to other Mesdaq counters.

Chart-wise, the stock has been on a downtrend. I see support at 54c. This means the downside risk is low and there is good upside potential. The company is working on giving a bonus issue of 1 for 2.

As to why the stock has not performed so far, I think it’s because the directors are reluctant to let go off their shares or perhaps the big boys have not accumulated enough.

For those who are interested to know more about the company, click here.

The above commentary is my opinion only. You buy and sell at your own risk.