Congrats holders. The investment is RKN is looking like a very good bit of business!
Assuming the sale goes ahead and they receive the special dividend, there'll have 12+ months runway. This'll give them some much needed breathing space to execute their growth ambitions, but they'll still be under pressure to reduce their cash burn. I don't think that they necessarily have to start producing positive cash flow by this time next year, but neither can they continue to burn $15m+ per annum (unless they can demonstrate explosive organic growth which is unlikely).
Product manufacturing costs consume 75% of sales revenue, before any normal operating costs are factored in, such as, staff, marketing, admin etc. The latter are over $8m per quarter, so the business has to generate enough sales revenue to service an annual cost basis of $32m+ per annum.
Even if we are generous and assume that operating costs remain constant whilst revenue grows, NOV would have to generate approximately $128m in sales revenue to break even.
It seems a big ask to grow sales 3x, which could take years. What are the other levers that NOV can pull to improve margins?
- Forums
- ASX - By Stock
- Ann: Reckon Sells APMG Business for $100m
Congrats holders. The investment is RKN is looking like a very...
-
-
- There are more pages in this discussion • 16 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add NOV (ASX) to my watchlist
(20min delay)
|
|||||
Last
6.5¢ |
Change
-0.006(8.45%) |
Mkt cap ! $23.12M |
Open | High | Low | Value | Volume |
6.6¢ | 6.7¢ | 6.4¢ | $23.22K | 361.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 48465 | 6.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
6.9¢ | 100000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 48465 | 0.062 |
1 | 40000 | 0.060 |
2 | 189303 | 0.056 |
3 | 90000 | 0.055 |
1 | 180000 | 0.054 |
Price($) | Vol. | No. |
---|---|---|
0.069 | 100000 | 1 |
0.070 | 50000 | 1 |
0.079 | 38710 | 1 |
0.080 | 235399 | 3 |
0.081 | 1850 | 1 |
Last trade - 15.59pm 07/10/2024 (20 minute delay) ? |
Featured News
LU7
Discover the strong preliminary feasibility of the Bécancour Lithium Refinery, showcasing resilience in a low pricing environment and a strategic plan to capitalize on future price recoveries
NEWS
Antler Copper Project hits major permitting milestone – air quality permit advances to final review
NOV (ASX) Chart |