Share
493 Posts.
lightbulb Created with Sketch. 137
clock Created with Sketch. 06/03/19
14:17
Share
Originally posted by Brad J
↑
I took some profits. Now on a forward PE of around 28 if you assume a $6m profit run rate. Last presentation stated 82 tonnes on order, which is enough to keep them busy for about 5.5 weeks. I am sure more orders are coming through but I thought they would have had more forward orders and it would be nice to see customers ordering further ahead to guarantee supply. Keep in mind the product once received by the customer, then needs to be made up and packaged, which can take a couple of weeks. Having come from this area I know that finished goods orders are normally ordered two to three months in advance and therefore I would have expected them to have at lease 8 weeks of orders at full capacity. This is probably why they are reducing their price, so that they can increase demand and fill the extra capacity they are going to create.
Expand
The 82T was referring solely to XP Powder, not overall orders. These are the kinds of incomplete statements that confuse the market. Your 2020 profit forecast will be hit by June.
