Interesting after-hours trading activity Friday with 1/3 of days trade taking place at 11c.
Another interesting point I found from the half-yearly report is there is no allowance for the scrap revenue. Looking back on previous half-yearly and full-year they are consistent with how they account for scrap revenue at the full-year only. Historically, scrap revenue accounts for approximately 7-8% of Revenue which is a significant total revenue contributor each year - 32M 2018.
Additionally, with Capral shutting down some of their facilities, a significant Occupancy costs reduction is noticed on the half-yearly.
Finally, the CEO mentions the efficiency improvements from the Capex spent last year starting to be material next qtr. Traditionally, Capex spend has a 3 year ROI, with 10m invested in Capex last year that is another 3m in cost savings each year.
Given the above and the loss they recorded last half-year, one could draw a conclusion that this is likely the bottom and a decent re-rate is coming for Capral over the next 6 months.
Ridiculous MC at these levels.
Congratulations to the buyers who picked up on the short term panic.
CAA Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
