My reason for holding is the fact they increased revenue by 32% while increasing expenses by 8%. This puts us in a strong position in FY 19 & going forward, and bring us close to positive net profits. I remind you that we are already making a positive operating cash flows, which will only go in one direction due to revenue is growing faster than expenses and at a good rate. These are my calcs for FY 19 & FY 20, D&A, taxes ignored.H1 FY19, revenue grew 24% faster than expenses, I am assuming H2 to be 15% as per the table above.
FY19 is already showing a massive turnaround in EBIDTA and FY 20 is likely to be a year of ultimate success with possible dividends given the revenue growth is sustained to these levels and expenses growth is constrained up to 50% of revenue growth.
FY 20 is also projected at 25% revenue growth and 10% expenses growth.
I also think the share is trading at a massive discount based on discounted free cash flows, these are my calculations:
If we continue to grow & keep our expenses growth up to 50% of the revenue growth, CAT should have the intrinsic value of $3.01. Even if I got it wrong by 20%, the fundamental value comes to $2.40.
I wouldn't sell if the CEO / CFO has or both have resigned. It simply means the job is up for grabs, and the change is always interesting.
DYOR !!
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Last
$1.56 |
Change
-0.030(1.89%) |
Mkt cap ! $413.8M |
Open | High | Low | Value | Volume |
$1.58 | $1.58 | $1.55 | $2.778K | 1.79K |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 6500 | $1.54 |
Sellers (Offers)
Price($) | Vol. | No. |
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$1.55 | 5689 | 1 |
View Market Depth
No. | Vol. | Price($) |
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2 | 6500 | 1.540 |
1 | 1600 | 1.535 |
3 | 16253 | 1.530 |
1 | 610 | 1.525 |
2 | 7015 | 1.520 |
Price($) | Vol. | No. |
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1.555 | 2000 | 1 |
1.560 | 1600 | 1 |
1.565 | 1600 | 1 |
1.575 | 4278 | 3 |
1.580 | 3164 | 2 |
Last trade - 10.02am 08/05/2024 (20 minute delay) ? |
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Last
$1.54 |
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Change
-0.030 ( 2.48 %) |
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Open | High | Low | Volume | ||
$1.56 | $1.56 | $1.54 | 1278 | ||
Last updated 10.41am 08/05/2024 ? |
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