The profit (loss) result is actually much worse than it looks, given the massive undervaluation of the 75 million options granted in the FY. Mgmt used implied volatility of 49% which is insanely low for this kind of stock- a fairer number would be in the 80-100% range. The only possible justification of such a low volatility would be that management thinks the stock is overvalued (given the options are calls and only make money if the stock rallies).
Using a fairer implied volatility of 80% comes out to around an extra $2.4 million in share based compensation
The auditors flagged this as a key issue, along with queries about their inventory valuation which seems to also be overstated. More red flags for you @mavericktrader4
Ann: Preliminary Final Report, page-14
-
- There are more pages in this discussion • 39 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add RSH (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
4.0¢ |
Change
-0.002(4.76%) |
Mkt cap ! $51.39M | |||
| Open | High | Low | Value | Volume |
| 4.2¢ | 4.3¢ | 3.7¢ | $301.9K | 7.521M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 369145 | 4.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 4.1¢ | 131324 | 1 |
View Market Depth
| Last trade - 15.45pm 04/10/2024 (20 minute delay) ? |
| RSH (ASX) Chart |