Repost from after market for those who missed it:
A unique opportunity: SBB - currently trading at 2.3c
Chart is below where I have circled a couple of key items
1) know when to trade with the tails. A huge volume day can be seen which was clearly a raid to accumulate a lot of shares, and did so without even pushing the RSI into overbought territory.
2) Rising trendline on the MACD, combined with the MACD turning positive.
FA is incredible:
Cash = $34 m
Cash backing per share ~= 13c (TRADING AT 2.3c)
MC = $11 m
NPAT = $2.9 m
==> the NPAT alone is sufficient to justify the MC, ad the cash backing of 3 times the MC!!!
The reason it is trading at the current SP is (IMO) because they have held on to the cash in order to grow the company and make acquisitions (what should be happening), rather than frittering it away on dividends in order to prop up the share price (what most ASX companies do).
An excellent opportunity for a med term trade but the rerate will also make for good day trades. DYOR and thanks to those that mentioned it on the DT thread today.
Day Trading 8 Sept Pre Market, page-15
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