"Even though it has risen quite a lot the share price is low by historical standards. If the company can increase (well, at this point, re-create) a profit from the huge annual revenue base the company will do very well."
You only need to convert a thin slither of all that Revenue into Profit and you have a lot of Profit in the context of the $200m market value of the company.
This company happily generated $30m in EBIT at one stage of its life (and on an asset base roughly half of what it is today):
Even if management didn't get EBIT all the way back to the glory days of $30m-plus, but to $23m pa to $25m pa, that would leave the stock trading on a mere 8.0x to 9x EV/EBIT, which are not overly demanding multiples despite the doubling of the share price over the past few months, to a two-year high.
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TRS Price at posting:
$5.49 Sentiment: Buy Disclosure: Held
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