Water under the bridge. The company obviously had no financial discipline in the past and squandered cash on R&D with huge costs overrun. Now Ben is gone and in the short span of 2 months since he's been gone:
- The company has signed 3 contracts worth AUD380m - USD$120m from Ukraine and $202m today. The backlog at Dec 22 was over $300m, so we have more than doubled the backlog within a few months. The EMS division, afaik, has much higher margin than other divisions.
- I looked back several years and even when the SP was $5-$10, the company has never signed such significant contracts. The biggest contract was $34m back in 2020.
- Cash on hand is at $45m, with $80m debt, $20m of which is due in September. This was a worry a few months ago when cash dipped to $20m, but should be ok now.
- $25m cost cutting, likely to bring the company back to profitability this year.
- It's hard to estimate due to the nature of the business but I'm expecting revenue to go to over $200m given all the new contracts and also delayed revenue from last year due to supply chain problems. The company was making $16m profit in 2019-2021 with less than $200m in revenue and high employee costs so my target for FY2023 is $30m-$40m in profit. A market cap of around $300m or $1.8 per share after 12 months is not out of the question.
This is the best shape the company has been in its entire life.
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Last
$1.81 |
Change
0.105(6.16%) |
Mkt cap ! $349.2M |
Open | High | Low | Value | Volume |
$1.72 | $1.85 | $1.70 | $1.650M | 916.6K |
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No. | Vol. | Price($) |
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1 | 60 | $1.80 |
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View Market Depth
No. | Vol. | Price($) |
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1 | 10000 | 1.790 |
1 | 4941 | 1.785 |
1 | 59117 | 1.780 |
1 | 3500 | 1.770 |
2 | 13400 | 1.750 |
Price($) | Vol. | No. |
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1.830 | 2904 | 2 |
1.845 | 29712 | 4 |
1.850 | 6451 | 3 |
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