CST castile resources ltd

FG, good summary.Just a few other points. Obviously...

  1. 1,200 Posts.
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    FG, good summary.

    Just a few other points. Obviously firetechniques, if genuine, really has not got to first base in trying to understand the basics of CST.

    Several things you did not mention but I think are important:-

    1. CST has three contract manufacturers, CSL in Australia, another one in Austria, and another one in the US. Great planning on their part as manufacturing can be switched around if currencies move substantially as they are at present. With the AUD down 30% or so against the US$ I would imagine they have cranked things up now to manufacture a lot more volume through CSL in Australia.
    Small, light test kits, airfreight costs per kit would be negligible, doesn't really matter where in the world they are manufactured.

    2. In addition to the 30% drop of the AUD vs the USD, the AUD has also dropped against the yen and the Euro, the yen by 30%+ plus the Euro by 10%+.
    The US, Europe, and Japan are presently the main markets thus profits repatriated back to the company here in Australia into AUD in the companys P & L A/c would show a AUD revenue increase of approximately 30% more than previously when the AUD was much higher.

    Add that 30% odd boost to the boost from the ramp up in actual unit sales worldwide and I think we have a few pleasant surprises in store.

    Shareprice was about $1.95 a month ago, now closed at $2.08 yesterday, maybe the penny has dropped with a few investors.
    So the stock has actually gained ground during the past month when the ASX has declined about 20%.
 
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