The broker report alludes to:
Strong management team to lead TOX forward,
Forecast $3.5m profit for 05/06 and $5m for 06/07 with possible further upgrade.
High barrier to entry for both obtaining a licence and technical expertise,
Growing market,
Profit forecasts do not include plant upgrades (costs approx $2m) . These upgrades will add between $5m - $10m to gross profit. May squeeze some of this in the 06/07 year.
Forecast $6m net cash on hand 06/07 which gives plenty of scope for a bolt on acquisition.
Surplus land owned by TOX may be used to produce income (how - not specified).
Have a look at the report on TOX website..
All in all looks very good going forward.
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