RLG 0.00% 0.5¢ roolife group ltd

Ann: RLG Receives Orders To Stock Alibaba's 300 Stores, page-18

  1. 342 Posts.
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    Great potential here IMO.

    Based on my gut-feel, I've seen so many other ASX small-cap shares that are on that tipping point of 'positive cashflow' that generate small accounting profits, and have 'potential' to grow. Many of them grow around low double digits top-line. I believe many of these would run a market cap of around 30M, which is just shy of 3x from here (4.0-4.5c per share).

    The logic I have on this one is as follows:

    1) If the 'market' believes this deal will move RLG past the tipping point, I think we are looking good for a positive swing up to the next quarterly, and (after factoring in risk), we could easily go 2x from here until that point (late April)
    2) If the 'market' doesn't believe - we'll probably trade sideways for a while, then (without any news) build in anticipation of the quarterly, and then if it hits - Boom, if it doesn't - Bust.
    3) Regardless of (1) and/or (2) - we will see plenty of down ramping, and many people talking about management being paid too much.

    Fingers crossed management is listening, and we get some further updates between now and late April, to move us closer towards (1) - and then have them deliver the knock-out blow when they report the quarterly.

    Good luck holders. Pick up those inanimate carbon rods, it's about time to go to space!
 
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