A small cap stock about to hit the big time
Australian Financial Review: Sydney, 16th Jan 2012
Joanna Heath: Facilitate Digital looks like a small-cap stock that is about to hit the big time. The company, which provides technology to buy and measure the effectiveness of digital advertising, is predicting a 350 per cent increase in net profit before tax for the six months to December 2011. The shares have received huge interest as a result, rising 146 per cent since the latest trading update in mid-December, when the company projected net profit before tax for the half year of $600,000 and earnings before interest, taxation, depreciation and amortisation of $1.25 million. Facilitate has tapped into a lucrative and growing area of business as traditional print forms of advertising are gradually declining. The company’s Symphony platform, a digital work flow and trading platform for multinational advertising agencies, is a key area of growth. Despite its stellar growth recently, the share price is still below its original float price of 20¢.
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