I agree, gross profit margins increased to over 50% in the period but one-off expansion costs and a higher R&D spend saw overall profits fall (also due to a higher tax rate).
Earnings and dividends are certainly not under question it's more on how fast the profits will grow going forward.
I'm 110% sure Perpetual wouldn't buy 10% of the company is they didn't think the business was strong and easy to turn around. Other investors will catch on but it certainly is hard to buy the stock for those fund managers that went overweight at $7 (now $1.70).
IGT is a massive company with a PE of 25, ALL has a better product and being the "new player" in the US are almost certain to grow market share. In their current field of games they have grabbed a large chunk of the market but the big bucks come when they start to steal market share in the stepper product.
In my mind there is no doubts about ALL but it could take some time for investor confidence to return.
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Last
$49.76 |
Change
0.330(0.67%) |
Mkt cap ! $31.45B | |||
| Open | High | Low | Value | Volume |
| $49.90 | $50.30 | $49.72 | $65.55M | 1.315M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 3636 | $49.74 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $49.78 | 879 | 1 |
View Market Depth
| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| ALL (ASX) Chart |