It’s very comfortable buying down here, about as low risk FA for a rerate as you can get.
by way of comparison EGL I bought some in the 3c range back when was $9/10m market cap in dec 20 (sold too early). it has 5 bagged since then to 17c
EGL dec 20 was virtually no cash and $40m revenue versus $10m market cap (v similar EV). Now 5 bags later in less than 12 months trading on $47m market cap to $46m revenue so 1-2-1
they are both very similar Australian based engineering companies. Similar works profile, similar client base. EGL only real difference is they have a PFAS tech they have started to exploit.
WSI at $23m market cap and $13m cash has the same EV as EGL before it’s rerate but 5x the revenue book for 2022
$220m revenue for a company of this size is ridiculous when more than half of their market cap is cash backed and they have a 600m pipeline of further bidded work
@Access2020 just a tag. try looking at the numbers on this WSI summarised above
5 bags to 12c would still be market cap 1/2 revenue without any further wins which still is a 50% ratio discount to EGL current trading post it’s rerate
