RCR 0.00% 1.9¢ rincon resources limited

FA analysis

  1. 91 Posts.
    lightbulb Created with Sketch. 20
    Not much out there on RCR re analyst views and coverage! From a quick fundamentals view, we have:
    1. FY17 P/E 15 but forward FY19 P/E 9 on the back of huge FY17 earnings growth (200%), then 50% FY18 and 20% FY19
    2. Mickey mouse debt levels
    3. Low dividend yield so should be able to fund growth via cash inflows
    4. High intangibles and goodwill ($200m or 40% of total assets) risky but representative of a growth company
    5. Sector/company primed for growth but risk re CW Government policy shifts given volatile politics atm.
    Before it's a buy, I'd like to answer:
    1. Can management handle this growth adequately?
    2. Are the forecasts likely to be met or exceeded?
    If so, RCR looks like a good MT opportunity - cheap based on FY19 projections - target SP of $5.40 on a P/E of 15...and a small 2% to 2.5% dividend going forward is the proverbial cherry on top!

    Views or insights into this??
 
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