Listen up, traders. Accept the offer and you may miss out.
From a buy-and-hold perspective, CST is a classic case of an R&D company that has developed a successful product that meets a global need, and has strong IP protection.
It has only recently moved into the commercialisation phase and its unit sales are growing rapidly. Yes, the strong $A is knocking prifits, and will continue to do so. But with zero debt, low unit costs and a high gross profit margin, the product should nevertheless rapidly increase sales, making good and growing profits for several years.
Such companies are notoriously difficult to value and I have no doubt a valuer can be persuaded to justify $3.55. But that price does not reflect the blue sky that is achievable in the next 2 years.
If you stick a profit of say $20m and RRR of say 12% into the equation, you get an intrinsic value well above $3.55.
The directors are not serving shareholder interests by recommending acceptance of the offer.
- Forums
- ASX - By Stock
- CST
- from a buy-and-hold perspective
from a buy-and-hold perspective
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CST (ASX) to my watchlist
(20min delay)
|
|||||
Last
7.4¢ |
Change
-0.001(1.33%) |
Mkt cap ! $17.90M |
Open | High | Low | Value | Volume |
7.5¢ | 7.5¢ | 7.4¢ | $21.31K | 287.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 158091 | 7.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.8¢ | 3125 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 158091 | 0.074 |
1 | 68000 | 0.072 |
3 | 230000 | 0.070 |
1 | 8475 | 0.059 |
1 | 13000 | 0.040 |
Price($) | Vol. | No. |
---|---|---|
0.078 | 3125 | 1 |
0.079 | 29850 | 1 |
0.080 | 20000 | 1 |
0.085 | 35000 | 1 |
0.086 | 15337 | 1 |
Last trade - 14.36pm 13/09/2024 (20 minute delay) ? |
Featured News
CST (ASX) Chart |
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online