Saw your post before it was moderated. The market can be irrational, but I think the bottom falling out of RCRs price to the extent you suggested is a big call.
I invest on fundamentals and momemtum. The former looks good for RCR - they are conservatively geared, have a low EV, low price to operating cashflow (my estimates at the bottom of this post). Plus they have a good outlook - in the mid year briefing they reported their order book was $245M of orders on hand at June 2009 (previous corresponding period $170M) with 50% of anticipated full year project revenue already contracted or under negotiation.
RCR could do alot better in updating the market on work won and earning estimates. Anyway, I am long. The company is worth north of $2 in my estimates using a peer comparison basis - time will tell which one of us is right.... cheers
1.88 Current ratio 2.00 Quick ratio 0.48 Debt/Asset ratio 0.94 Debt/Equity
120,900 Market capitalisation 174,688 Enterprise Value 96,688 Tangible enterprise Value
8.69 PER 0.765 NTA per share 1.365 NA per share 0.107 EPS 1.216 Price/NTA
0.136 eps 2010 0.191 eps 2011 6.84 per 2010 4.87 per 2011 0.05 div per share 2010 0.07 div per share 2011 0% div surprise 0.050 risk adjusted div 2010 0.067 risk adjusted div 2011 5.4% yield 2010 7.2% yeild 2011
RCR Price at posting:
93.5¢ Sentiment: None Disclosure: Held
