Australia's largest stock trading and investment forum Australia's #1 stock forum

AJX

0.00%

1.2¢ alexium international group limited

Hindsight, page-185

First 185 Last

Share
Profile

Follow
Northen_munky

10,074 Posts.

1555

27/05/15

17:34

Post #: 15362488
Share

Originally posted by grandcaruso ↑

Tell me of a company who in this or a similar industry that has a net margin of 35%. These guys will be lucky to get anywhere near 25%. It simply doesn't happen especially when they are trying to win new business in a constricted market. And if you try valuing this company on any other metric it actually becomes more and more expensive. High net margin companies are mainly in the service industries ( ie finance , healthcare etc.) and I don't buy the comparison some here do with FB and other's in the technology sector.

I'd be willing to say now that this quarterly ( released in July ) will show AJX has a net decrease in cashflow ( ie they made no profit ). Notice there was not one mention of profit in the addressable revenue statement and that the sell off has happened since the CR. Why would they need to raise that level of funds if they were making 35% profit margins.

I noticed the PP come out minutes from my posting - good to see.

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html

Expand

Taken on some of your points but constricted market?.Don't follow

If anything the market isn't constricted for Ajx There is little or no constraints in my book as being proved daily ..AJX have the only product on the market that can service various outlets including military and commercial etc. Disruptive technology that will turn the FR community on it's head and the profit margins will come with it, If your the only game in town i can see 35% being realistic.

Regards

AJX Price at posting: 46.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

What's causing the cost-of-living crisis, and how to navigate it

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon