hiddenvalue August 7, 2018

CountPlus (CUP)

  CountPlus Investment Thesis Market data Ticker:                         ASX:CUP Price:                            $0.66 Net debt:                    ~$0m Market cap:               AU$74m   Elevator pitch After years of poor performance, a revolving door at the C suite and ongoing restructuring charges/impairments, recent insider buying gives us confidence that CountPlus has reached an inflection point in its turnaround. Looking through the one-off charges to cash profitability and assuming no improvement in operating margins (~10% vs. peers >20%) we believe the shares are selling for a pre-tax free cash flow yield of 14%. As the turnaround begins to show up...

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