NOV 1.19% 8.3¢ novatti group limited

@SkyLimit@TwitchhI appreciate the responses. I'm not disputing...

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    @SkyLimit
    @Twitchh

    I appreciate the responses. I'm not disputing current growth rates, but getting from circa $20m to $40m (which includes acquired growth), does not imply that NOV will scale to $120-130m sales revenue annualised over the next year. This is a huge jump, which is why I'm suggesting it is unlikely to occur within 1 year. If you apply the 65% y-o-y organic growth rate, it gets the company nowhere near the sales revenue necessary to break even.

    Good point about the banking costs, although my assumptions were that operating costs would not rise (which is not viable in the context of 3x sales growth), so these tend to balance each other out. In other words, it looks like NOV's cash reserves (including the special dividend) will be depleted well in advance of reaching break even.

    I'm not here to criticise what NOV is doing, which is why my question was related to how they might be able to improve margins.

 
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