drop, page-3

Boondog,

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

12.55 Enterprise multiple (EV/EBIT)
4.04 Enterprise multiple (EV/EBITDA)

0.24 OCF/Share
0.08 FCF/Share
3.90 Price/OCF
11.85 Price/FCF

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