eieio You are right, no point arguing over the definition of a...

eieio You are right, no point arguing over the definition of a commodity.
I am just astounded by the valuation here.
This is a company which is now forecasting FY19 profit of $4.1M. This is below my guesstimate of $5M, so I would revise my valuation based on 14 x EBIT to $57M or a share price of 98c.
There seems to be general consensus that the current share price would require EBIT of around $44M to justify it. So the base assumption of the market is the profit will increase 11 fold.
This is a tiny company with about 8 employees (staff costs FY18 were $800k). To turn out a profit of $4M is a fantastic achievement for such a small team and asset base, but talk about high expectations.
The hope seems to be that non mineral sunscreens will be banned due to their impacts on reef, but nano-zinc oxide has also proven to be toxic to marine life so that prospect seems very uncertain.