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16.5¢ rubik financial limited

My other comment would be be this guidance implies free cash...

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james_peach

96 Posts.

5

19/11/14

22:07

Post #: 14318272
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Originally posted by james_peach ↑

RFL went through an extreme transformation in FY14 with multiple large acquisitions. It is very common for a business to show very poor profitability in a year of acquisitions.

FY15 was always going to be about consolidation and integration, current guidance seems realistic. This is a FY16 story and $0.20 seems to be within a range of reasonableness.

Although R&D is likely to take up a large percentage of free cash for the foreseeable future if they want to remain competitive in a competitive industry. This obviously slipped investors minds when they valued the company at $0.55.

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My other comment would be be this guidance implies free cash flow to equity of about $6-$7M with reasonably high investment in R&D which is good.

Any one have a counter opinion on this?

RFL Price at posting: 20.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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