EDMI

[cif5000]

SMB, which now owns the whole of EDMI, has announced the award of SMB performance shares to Mr Lee Kwong Mong if EDMI's total profit for the next three years exceeds $62m.
It is good that SMB has made public the criteria for the award.
EDMI's profit was $9.7m in 2010. Profit in 2011 may be around $12m, based on SMB's results announcements.
If EDMI has projected orderly growth at 30%, its yearly profit between 2012 and 2014 will be:
2012 $15.6m
2013 $20.1m
2014 $26.1m;
making a total of $61.8m.

If this optimissim is not without basis, SMB had been shrewd the privatising EDMI.

Whoever owns EDMI will have the option of doing another IPO. The market cap will not be anything less than $80m!

[dzwm87]

If you look at the earnings for SMB alone - consolidating MI as well, you will realise that the target set for the Share Performance Plan is not optimistic at all. It only requires them to perform consistently at that FY10 level & they are almost close to the target.

But one thing for sure, I will agree that the management is quite shrewd. During SMB's EGM, he has been constantly playing down the company, as though making sure the target seemed hard to reach.

Nevertheless, there is potential in EDMI & I'm awaiting to see how it goes for the takeover bid by Boer

Don't think they will re-IPO EDMI.