Ambition Group Limited ("AMB") - Ride the recovery!

[steve fleming]

http://stocknessmonster.com/news-item?S=AMB&E=ASX&N=624350

MArket Cap = $19mil
No debt
Cash = $6.5mil

So EV = $12.5mil
EBITDA for FY10 (per presentation above) = $6.2m

Trading on 2 x EBITDA!! Pretty crazy stuff!!

Turnover of $100m so this is no small time company.

Currently at 29 cents - in 2007 this was trading at over $2....value galore!

I just love buying opportunities like this!!!

[Lizard]

Steve,

How did they get to EBITDA of $6.2m when they have $2.9m NPBT, $0.9m DA and net interest received of around $0.1m?

It looks pretty cheap on a Price/Sales basis for recruitment. If they could turn a more typical margin on it, the sp should be up closer to 70cps.

Was surprised that they didn't seem to have any federal contracts on AusTender for over a year though - most recruiters show up on there to varying extents. Also their guidance is pretty fuzzy at this stage, so would take me a bit more time to get a feel for the odds on them showing some improvement, but looks interesting.

[Corporate]

How did they get to EBITDA of $6.2m when they have $2.9m NPBT, $0.9m DA and net interest received of around $0.1m?


I was thinking the same thing? Where is the other $2.3m?

[steve fleming]

I was thinking the same thing? Where is the other $2.3m?

I understand that it is the leasing expense...so not technically a below EBITDA expense!!

Notwithstanding this, the recrutiment comparables (Talent2, Clarius, Clandler Macleod) are all trading around 6 / 7 times FY11 EBITDA, so there is significant valuation mis-match here.

[Corporate]

I understand that it is the leasing expense...so not technically a below EBITDA expense!!

What a nonsense! That kind of disclosure is nothing more than deception IMO.



Notwithstanding this, the recrutiment comparables (Talent2, Clarius, Clandler Macleod) are all trading around 6 / 7 times FY11 EBITDA, so there is significant valuation mis-match here.

Steve, I don't usually follow recruitiment companies. But out of interest, are they trading at 6/7 actual EBITDA?

[steve fleming]

What a nonsense! That kind of disclosure is nothing more than deception IMO.



Steve, I don't usually follow recruitiment companies. But out of interest, are they trading at 6/7 actual EBITDA?

Hi corporate, when i ran the numbers (pre Japan impact) they were trading on approx 8/10 FY10 EBITDA...so analysts are forecasting around 25% EBITDA growth between FY10 and FY11.

Didn't do any analysis on H1 Fy11 actuals + H2 FY11 forecasts....AMB has a december year end....so comparisons are slightly distorted.

[Lizard]

Hi Steve,

My order only got part filled and forgot to have enough free cash to be able to move the remaining bid http://www.aussiestockforums.com/forums/images/smilies/banghead.gif

That aside, the bid seems to be moving up quite well, though on low vols...I did rather wish they'd just merge with my HIT shares after the last announcement re IT strategy though!

[Lizard]

Lizard, that emoticon is great! How do you do that?

Steal it off aussie stocks (http://www.aussiestockforums.com/forums/misc.php?do=getsmilies&editorid=vB_Editor_001) :D

(if you hit reply with quote, you can grab the link...)http://www.aussiestockforums.com/forums/images/smilies/jump.gif

[Lizard]

Sliding backwards on that HY result. Pompous language is right up my alley, but the numbers aren't doing it for me...3538

[percy]

Sliding backwards on that HY result. Pompous language is right up my alley, but the numbers aren't doing it for me...3538
More like "dribble".Think somebody startched the writer's underwear.!!! Never ever read anything like it.!!!! lol.
Would take "tosser of the year award".In fact would win "super tosser award" hands down !!!!!!

[STRAT]

Another super cool emoticon Liz. Do you have one with falling knives? LOL
This one is all I could findhttp://www.aussiestockforums.com/forums/images/smilies/axt.gif

How about this one for current market conditionshttp://www.aussiestockforums.com/forums/images/smilies/hitsthefan.gif

[Lizard]

More shuffling of shares here, Steve, with a bit over 5% changing hands on Friday on rising price (20cps).

Don't think it can be Victor Plummer this time, as he he's restricted to creep (and already crept 2%).

There is still value buried in this one, but recruitment not exactly in boom times - though maybe some room for consolidation.

(Still holding a few, but underwater.)