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Ann: 99 Wuxian delivers significant revenue and profit growth, page-24

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Anton Chigurh

13,097 Posts.

236

02/03/15

23:31

Post #: 14848285
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Originally posted by JBaker12 ↑

Its simple, the business is just expensive and still is. The company has a lot of growing to do before it will get the SP going again. It doesn't help that the only broker that follows it has overzealous assumptions backing its estimates. If Foster's were right the company would be on a forward EBITDA multiple of 33x, but at the realised FY14 EBITDA of $3.2m its still on an 84x multiple. Without some exceptional news or a big unexpected leg up in growth, the SP will likely slide for some time until its not as expensive.

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Looks to be going the way of another Chinese company, E88, a couple of months back; although not suggesting NNW requires the same level of restructuring and cost cutting.

Waiting for the overcorrection in selling now and looking for the telltale signs of accumulation or a blowoff day.

NNW Price at posting: 25.0¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

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