Hi YStrategy/finch2.
I am not a great believer in NTA .
The hallmark of a good business is its ability to generate cash regardless of its asset backing, because of the quality of its IP/market approach/market share etc...
Almost all asset heavy outfits have low ROE & often don't trade too far from book value....Some even trade below cash backing ....This is an insult...It means the market has zero regard for these businesses.
RFT has ROE 24.5%...Anything above 15 is considered elite.
It is also trading at 3x book value...There is some respect , even if we don't think so.
However it is comforting to know that RFT has been gradually increasing its asset backing over the last couple of years....A "tangible" evidence of quality.
RFT Price at posting:
0.7¢ Sentiment: None Disclosure: Held
