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.
RFL Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
