Value Investor, Frontier Asia Capital

Winston Chu

Value Investor

Frontier Asia Capital

Equity Bottom-Up

<p>As covered by Vaibhav, the <a href="http://www.asx.com.au/asxpdf/20160503/pdf/436z57lrgcndgr.pdf" target="_blank">latest 2H16 update</a> today resulted in a massive drop in share price &gt; 50%.  My analysis will discuss points of concern among investors and also my view that the negative reaction was excessive, leading to a relatively attractive entry point even for value investors.</p><p>To begin with, the violent swings downward were a result of the $50m raising in November based on the ~$20m EBITDA guidance for FY16.  After removing that guidance,  prior CEO James Cameron communicated that…</p>

As covered by Vaibhav, the latest 2H16 update today resulted in a massive drop in share price &gt; 50%.  My analysis will discuss points of concern among investors and also my view that the negative reaction was excessive, leading to a relatively attractive entry point even for value investors.To begin with, the violent swings downward were a result of the $50m raising in November based on the ~$20m EBITDA guidance for FY16.  After removing that guidance,  prior CEO James Cameron communicated that…

Surfstitch

Surfstitch - Reading The Waves