Ann: AEI $12 million placement to support global growth, page-53

I have these guys on a forward PE of about 5, on their stated tripling of capacity from the ready to go Texas 'large volume facility'. The market cap looks large versus their revenues, but they have fantastic margin and are now delivering strong growth in sales. Plus their outsourced production and large partner distributor relationships should continue to deliver scale up, with relatively little increase in overhead.




The market demand looks very strong (brief snippets from the Full Year report comments):




And then, as the last quarterly stated:



I think as soon as the market sees the US approval and starts to understand the scale of the roll out there, and takes confidence in delivery, then I think a double in market price to around $1. And that seems likely over the next six months, all going well.

Then it is all about how big - in the US, with possible further expansion over the initial factory capacity, and how big with China and Europe already targeted with distributorships. I don't think the current, ready to go US capacity, at just around double the Australian capacity, will meet the US 330m population size market demand.

Lots to prove, but the upside looks good. Tear this to bits, it is always worth getting your views tested. It is optimistic in the sense that US approval is assumed to be imminent, and assured, that the packaging and raw material pipeline they have been preparing is well managed to support the ramp up, and assuming current demand build up and operating margin continues. So far they've delivered.