TOX tox free solutions limited

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  1. 5,874 Posts.
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    analysis of tox Their net operating cash inflow for the June quarter was 800k. Over half of that was from June.

    Fundamentally even if say growth stagnated and their operating cash inflow was $800k x 4 = $3.2 million.

    The share price should still be above 6c (mrkt cap of approximately $30 mil) which would give it a P/E ratio of 10.

    Personally I think growth will continue but I think a worst case/most conservative scenario analysis would see the share price at 6c at the end of the year.

    The options will be well and truly in the money.

    A company who is experiencing increases monthly in operating cash flow does not just fold like a pack of cards. The great thing about the ASX making TOX release their cashflow reports monthly was that we could do much more accurate analysis of the company's position fundamentally which we would not usually be able to do wuith other stocks.

    The fact that we could see their cashflow increase month to month during the first six months of the year indicates to me that the company is growing.

    If they released their reports quarterly then there would be much more uncertainity as to which months were profitable and which months were not. We would not have been able to see that half of the 800k cash inflow for the June qtr came through in June.

    A very exciting six months lays ahead for TOX.

    Dont be scared by traders manipulating the market.

    TOX will ahve a much higher share price at the end of the year.

    Cheers
 
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