QAD - Quadrant Iridium

[Knobby22]

This is one for any fundamentalists to take a look at.

They own part of the US firm Iridium Satellite LLC which due to Katrina and modern living has increased their profits 73% from the same quarter last year.
They are now providing capital repayments that will rapidly reduce QAD's debt.

Iridium are on the market and if sold QAD should be awash with cash.

Secondly, QAD has took a controlling stake in HCT at a bargain price.

And they have got their own businesses.

In terms that traders understand the price has formed a strong base and should take off following a good announcement.

Knob

 

[Knobby22]

Market is catching on! Up 11% today.

 

[Knobby22]

Iridium announced double EBITDA today compared with last year.

Iridium Doubles EBITDA in Second Quarter.

Melbourne, July 25, 2006 – Quadrant Iridium Ltd (ASX: QAD) today
announces the second quarter highlights for Iridium Satellite LLC (of
which Quadrant indirectly holds ≈9% stake).

• Voice and Data Subscriber numbers have increased 25%
compared to the same quarter last year to 159,000.
• Revenue for the second quarter 2006 increased 31% compared to
the same quarter last year to US$53.6 million.
• EBITDA for the second quarter 2006 was US$13.2 million an
increase of 100% compared to the same quarter last year.
• Cumulative EBITDA for the half year was US$26 million.

 

[Knobby22]

Another 20.8mil capital return!
Release from loan guarantee resulting in increase of 800K to bottom line!

All good news!

 

[king.jackson]

Hi Guys,

First post on this site for me! - (Although I have been keen a reader for a little while now).

Wanted peoples thoughts on QAD.

After their Company Update release last week I cant believe there was minimum movement on the stock. It seems very undervalued to me.

A great cash flow, 6 million cash in bank, no debts and now paying dividends!

"Managing Director Adam Legg said “Quadrant has never been in such a
strong financial position, we have more than six million cash at bank,
zero debt and the main operating business unit, Healthpoint is
performing better than ever”.

Thoughts...

 

[Knobby22]

I do think the stock is still a bargain however ...
the accounts are not at all clear, they have missed out the HLT takeover. Why have some of the costs risen so much? Why is the amount spent on travel so high? Suspect CEO has hands in till.

Still, when Iridium is sold should get a very health cash return, if they give us one.

The annual report had better be better otherwise we shall see a few shareholders including me) turning up at the Annual Meeting with some hard questions management will need to answer.

 

[king.jackson]

Well a little extra money being spent on travel isnt such a bad thing in my books. Could be just a case of drumming up more business.

If theyre now flush with cash, it doesnt surprise me they are spending more. You've got to spend money to make money!

But yes, i agree, it would be nice to be told some more specific information on what is happening.

 

[Knobby22]

I am a bit critical as I have invested a substantial sum of money.

It will be a great investment unless management stuff up.

The basics are goods though. The markt cap is only 31 mil. Healthpoint seems to be improving though it was 15% below forecast and HCT may be a real goer. It is Iridium which really gives value to the company though. I can easily see a rerating of the company to double the present price.

The next six months will be very intersting and hopefully very profitable.

 

[king.jackson]

Yes, it's very undervalued at this point in time.

If it was a mining exploration company that hadnt even dug a thing out of the ground it would probably be over a dollar!!

 

[king.jackson]

Does anyone here know what the hell QAD are up to?!!

They release information saying how they are cashed-up and have never been in a better position but havent actually said what they are doing!

Whats going on guys?!

Now that you have this available money why dont you tell your share holders what you intend to do with it! Not doing much in the bank! Or is it just paying your wages to sit around with your thumbs up your backsides?!

 

[Knobby22]

Is this a new release?

I wish they would tell us what they will do with the money.
They have said that they will sell the Iridium investment which will bring in a lot more.

I wish I trusted the management more.
Have you received the annual report in the mail yet? I haven't.

 

[king.jackson]

I havent recieved zip from these guys.

Im 50/50 on selling at this stage and may buy back in down the track if they start to do something a bit more interesting.

Right now however it's one big snore!

 

[Knobby22]

King

They have put Iridium on the market.
If they sell, which could happen next week or in six months the price will jump substantially. We know the company is worth more.

Patience required.

 

[king.jackson]

Your right K22,

Just looks very weak at the moment. I agree if they sell their Iridium portion it'll be good for the shares. Healthpoint looks good too but whats happening with HLT?!!! All a bit unclear.

hmmmm, to hold or sell.....

I'll hold and look at the situation again toward the end of the year....

 

[Knobby22]

Hopefully we will get a Christmas present.

 

[Knobby22]

AS expected, QAD have decided to take control of HLT through the clever loan deal, now owning nearly half.

 

[king.jackson]

Yes, but why the fall to .049 breifly today?! (Luckily it came back up).

Dont think the market knows what to make of investing into HLT. Nor do I really?...

 

[king.jackson]

Just finished reading the "Independent Experts Report" on the QAD loan/share transfer.

Interesting potential with the ULTRA PAY product into the european market and good to see them selling off the telcogames and TV network in Sri Lanka.

Something tells me the QAD guys know what they are doing...

 

[king.jackson]

QAD up 10% yesterday and looking much stronger in the buying side recently...

 

[Knobby22]

I think the real trigger for a rerating will occur at the AGM.
When are they having it? Surely they will get into trouble with the ASX soon.