AJX in Transition, page-25

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Keffola

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23/01/18

08:56

Post #: 30487288
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Originally posted by plough ↑

"How could they have revenue 5 million in a qtr to end up with 300k profit something is serriously wrong totally rediculous and needs to be sorted maybe a new CEO."

You mention it is a 300k profit , are you getting that confused with a 300k positive cashflow ?
Understandable if you are confused as Aaron had to subtly correct Gavin on that in the webcast .

The list of companies Taureen7 graciously provided had a couple on there that had decent sales but if one checks them out deeper were running at a loss ie ASH and OMN , with OMN they would have reported a small profit but had tax liabilities from previously they had to pay for so underlying profit but a statutory loss any way not unusual for companies to have decent sales but to run a loss .

Looks like though the other companies were reporting an after tax profit equivalent to around 7% of sales.
SO to get to a fundamental basis of say a PE of 20 from sales based on current market cap of 105M for AJX then :
$A105M /20 = 5.25 M
5.25M /0.07 = A$75M in annual sales needed to justify current market cap (assuming all things being equal which they are not )

Welcome to be corrected !

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Not correcting or disputing your thoughts, but just putting up another hypothetical calculation using your numbers.

Based on A$75M in annual sales, assuming 30% margin = $22.5 million gross profit.

Deduct admin cost $12.5 million (approx from last year's final report)

Net profit = $10m

Using PE of 20 gets us to market cap of $200m.

Last edited by Keffola: 23/01/18

AJX Price at posting: 31.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 1.0¢		Change 0.000(0.00%)		Mkt cap ! $15.62M

Open	High	Low	Value	Volume
1.0¢	1.0¢	1.0¢	$102	10.18K

Buyers (Bids)

No.	Vol.	Price($)
6	3978785	1.0¢

Sellers (Offers)

Price($)	Vol.	No.
1.1¢	113120	1

View Market Depth

No.	Vol.	Price($)
6	3978785	0.010
4	616765	0.009
2	182600	0.008
1	200000	0.007
2	378000	0.006

Price($)	Vol.	No.
0.011	113120	1
0.012	2545455	2
0.013	1766914	4
0.014	564269	2
0.015	1200	1

Last trade - 12.28pm 26/07/2024 (20 minute delay)

AJX (ASX) Chart

AJX in Transition, page-25

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

Nine's staff strike as Paris Olympic coverage begins

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

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AJX in Transition, page-25

Top Stories

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

Nine's staff strike as Paris Olympic coverage begins

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

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Featured News