Congrats holders. The investment is RKN is looking like a very good bit of business!
Assuming the sale goes ahead and they receive the special dividend, there'll have 12+ months runway. This'll give them some much needed breathing space to execute their growth ambitions, but they'll still be under pressure to reduce their cash burn. I don't think that they necessarily have to start producing positive cash flow by this time next year, but neither can they continue to burn $15m+ per annum (unless they can demonstrate explosive organic growth which is unlikely).
Product manufacturing costs consume 75% of sales revenue, before any normal operating costs are factored in, such as, staff, marketing, admin etc. The latter are over $8m per quarter, so the business has to generate enough sales revenue to service an annual cost basis of $32m+ per annum.
Even if we are generous and assume that operating costs remain constant whilst revenue grows, NOV would have to generate approximately $128m in sales revenue to break even.
It seems a big ask to grow sales 3x, which could take years. What are the other levers that NOV can pull to improve margins?
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Ann: Reckon Sells APMG Business for $100m, page-16
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Last
5.0¢ |
Change
-0.002(3.85%) |
Mkt cap ! $17.78M |
Open | High | Low | Value | Volume |
5.1¢ | 5.3¢ | 5.0¢ | $6.841K | 134.8K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 37410 | 5.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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5.3¢ | 5933 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 37410 | 0.050 |
2 | 180000 | 0.048 |
2 | 71739 | 0.046 |
1 | 170000 | 0.043 |
4 | 137229 | 0.041 |
Price($) | Vol. | No. |
---|---|---|
0.053 | 5933 | 1 |
0.055 | 117000 | 1 |
0.056 | 110000 | 1 |
0.057 | 10000 | 1 |
0.058 | 120000 | 1 |
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