rtl-ritract green alert to $1.10, page-27

re: rtl-ritract still green alert to $1.10 Wed was very exciting and volatile trading. As I mentioned it will take a little while probably in the new year to get to green alert as many people are still in holiday mode. Obviously those who lock in at the current time will be at advantage. Talking about volatility especially with half day on Wed. It went as high as 62c and as low as 50c.

I did mention look for a good entry point. Some obviously did and picked up at 50c which is not bad. Rtl has so far hit a high of 70c so from this point hopefully it will consolidate and look at higher levels as it settles. It will remain volatile, and on Monday onwards with the new year we can hopefully some exciting and positive trading as those who miss out so far will get into the play.

Research yourself and see if you agree.

Bigprofit

I last wrote on Wed:


hecked the market depth, seems ok should maintain at least yesterday level. I am sure many people are on sideline waiting to jump in. Plus many are still on leave. As with UNI it took a few days. probably good time to get set especially if it slips, if it does then look for entry point, otherwise it will just keep going.

The website as pointed out by few people is www.ritract.com to get more info. The details seem to gel and we are looking for rtl to close the gap with uni in terms of share price and valuation. we now have extra info on the options, and that seems very good as well. One option for 1 share in 3 months time and exercisable at 30c, so that itself is worth 30c already. Everything seems to point towards positive movement towards $1.10. I dont think I will worry about the addiotional shares, likely they will not be exercised immediately, I cannot see all 45 million being exercised expecially if they are long dated. Why exercise when one has more leverage. Even if exercise that means lot more cash for company and total shares still be under 100million and with such potential should not dilute share price- I dont think the options exercise is an issue. Should look forward to getting the new options as they will be worth a lot in addition to the shares. The options have made this even better than uni.

Lets look forward to some good action today and over next couple of weeks.

Research yourself and see if you agree.

Bigprofit

I wrote last night:

I am most excited with Ritract as it so much resembles Unitract which if some of you can remember, I put a green alert on it 40c after it came back on the board and went below 30c before taking off to a dollar and settles above $2. if I recall right and I cannot believe it that it was almost exactly this time last year that Unitract came back on board and, so soon after the new year, it took off. At that time I had a green alert to above 80c and Unitract went above all expectations. This has to be Unitract II and looking at its products, potential and momentum, a green alert is justifiable. The first green alert to $1.10 and if it breaks it will head for $2 and match Unitract the first!

Firstly, it was a very successful float and unlike Unitract which came back in a different form after being suspended. Secondly the capital structure is pretty tight with some 40million shares only being available. I have also seen in the prospectus that there will be an added sweeterner in the issue in that the company will issue options to holders of the shares at the end of 3 months following the listing, and I think the options are long dated so a lot of value in it.

The volumes like couple days been huge and a lot of interest and momentum, buyers just cant get hold of stocks because of tight capital structure which means Ritract can move steeply higher. Today it moved up above 70c before trading lower at 58c on close. I can see it retracing forward into the seventies again fairly quickly before hitting our green target next week.

There are many reasons why Ritract will get to green target. A good comparison is Unitract but I can see that on comparison, Ritract has possibly a better technology and more advanced in its development. The retraction is automatic and the use is exactly the same as traditional syringes, therefore should be no mistake with the needles and no lessons required on how it needs to be used. Ritract has also different types of syringes for different uses so the market is wider. Ritract also believes that it meets all Aust standards ie no tampering, non reusable etc which means potentially it will be accepted in the Aust environment in the short term. It was also indicated that Ritract will be looking at the US market and looking at the syringes being approved there. The company also hopes to address the World Health Org and other health organizations around the world to gain recognition.

All these point towards a product which is ready to be marketed and the company seems to be ready with its strategy to tackle the huge syringes market both in Aust and the US and the rest of the world. It seems that Ritract is advance compared to the other syringes companies in the market. Their coverage is also a lot wider ranging from general hospitals to illicit drug users.

On this basis, I feel a green alert to $1.10 is appropriate for the very short term through to $2 in the short to medium term, in the 1st through to 2nd quarter of next year. Again because it is a new float and many investors are on holidays the rise although dramatic has not been extremely dramatic to yet hit the green alert. However, when everyone is back, the green target can quickly be reached.

Research yourself and see if you agree.

Bigprofit