going places, page-11

Hi Stoss :) Here is the copy-and-paste of my post over on SS:

StockDoctor has re-confirmed Redflex's status as a Golden StarStock. Following the release of the results, here is the StockDoctor Analyst's summary of Redflex:
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RDF has once again attained Consistently Healthy Star Stock Status following the release of its latest annual results.

Strong results for both key ratios regarding debt levels and cash flow (TLTAI and CFBCL) coupled with solid performance across other ratios indicate a manageable level of financial risk satisfying Golden Rule #1.

Net operating profit before tax and significant items has risen markedly from $3.315 million in the previous corresponding period to $9.392 million. Return on Assets (ROA) has increased from 5.60% to 10.90%. Pre abnormal Earnings per Share (EPS) has risen from 4.20 cents in the previous corresponding period to 10.06 cents. This translates into EPS Growth of 139.52%. As ROA and EPS growth have remained above our 8% benchmark and EPS growth has been consistent for the past 18 months, RDF is able to satisfy Golden Rule #2.

RDF last closed at $2.92 at a PE of 29.03 times, which when compared to the Technology Hardware & Equipment sector average of 11.05 times, suggests the company is potentially overvalued at current prices. However, the PEG of 0.21 suggests that the premium being paid by the market on the company's earnings may be justified when the rate of EPS Growth is considered. RDF satisfies Golden Rule #3.

RDF doesn't pay dividends. As such, investors seeking an income will perhaps look elsewhere for a steady return. With a market capitalisation of $250 million, RDF easily meets Golden Rule #6. The 22 day average daily dollars traded is $197,173 making it suitable for retail investors.

The outlook for the company is positive with further growth expected in 2006. Consensus analyst forecasts expect the company to achieve full year EPS of 13.70 cents for 2006. This would see the company trading on a forecast PE of 21.31 times and a PEG ratio of 0.18.

The Financial Risk calculated for June 2005 is Strong :-

° The analysis shows significant financial strength
° Risk is minimal
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That certainly seems like a pretty glowing report to me, and I'm not even a fundamental investor - I'm a chartie! ;)

RDF remains in my bottom drawer (bucketloads of them) as my long-term investment, where they have just been joined by Paladin.