Wednesday, August 27, 2008

Stock Research: QMASTOR (ASX:QML)

QMASTOR Limited is engaged in the provision of operations, marketing, logistics and commercial software and services for the bulk material industries, particularly mining.

Share price: 34 cents
Market cap: $14m
Year end: 30th June

Pros

- Software group, selling to mining industry.
- 2008 a breakout year
- 2009 revenue forecast to grow 80% to $9m
- Recurring revenue streams via software licenses.

Cons

- Hard to judge their competitive position.
- Cash generation not great.
- 2009 EPS forecast 3.25 to 4 cents, vs 3.05 cents in 2008. Heavy investment in R&D and international investment costs.

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