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7.14%

7.5¢ rpm automotive group limited

Ann: Change of Director's Interest Notice, page-9

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alonso

16,348 Posts.

137

13/04/23

13:36

Post #: 67256387
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Originally posted by GKeden: ↑

Hello. This is an interesting company. It is undervalued based on earnings per share. The problem is the negative cashflow, which was apparent during the previous financial year, if the financial reports were read. The negative cashflow improved greatly in the last half-year financial report. There must have been a large seller because the underwriter of the capital raising did not re-announce becoming a substantial holder again. The underwriter must have been a major seller. This type of negative cashflow vs positive net profit comes from too much inventory. Covid would have caused supply problems and a probable over-purchase of inventory to secure supply. Unlike perishable or fashionable goods, the excess inventory can probably be sold rather than written-off. The company is in an interesting phase. The loans also add pressure to the operating profit however the company is profitable in an accruals accounting basis. Its a matter of balancing the inventory.

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Your post is instructive.
My feeling is that management has a duty, maybe not a legal one but one in it's own interest, in the present circumstances to advise shareholders of the reasons it sees behind the fairly dramatic fall in share price.

RPM Price at posting: 9.3¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 7.5¢		Change 0.005(7.14%)		Mkt cap ! $18.92M

Open	High	Low	Value	Volume
7.1¢	7.5¢	7.0¢	$151.5K	2.080M

Buyers (Bids)

No.	Vol.	Price($)
1	58577	7.2¢

Sellers (Offers)

Price($)	Vol.	No.
7.5¢	150503	2

View Market Depth

No.	Vol.	Price($)
1	58577	0.072
2	105893	0.070
1	105775	0.069
1	150000	0.068
1	202835	0.064

Price($)	Vol.	No.
0.075	150503	2
0.077	110000	1
0.079	30000	1
0.083	200000	1
0.084	103889	1

Last trade - 16.10pm 24/06/2024 (20 minute delay)

RPM (ASX) Chart