The Mining Boom will ensure RCR has lots of work at higher...

The Mining Boom will ensure RCR has lots of work at higher margins for many years to come.

The company most like RCR is Monadelphus ASX:MND

MND has been a bit of a market darling.

Lets do some Comparisons......


MND vs RCR

6 Months Sales Revenue
MND Down 7.8% to $460M
RCR Up 38% to $223M

Profit after Tax
MND Up 2% to $32M
RCR Up 11% to $9.1M

Market Cap
MND $1,084M
RCR $141M

PE
MND 17.5
RCR 6.4

RCR is now nearly half the size of Monadelphus.
Yet its Market Cap is about 1/8th.


MND at its peak had a Market cap of $1535M
This is for a company twice as large as RCR....

If RCR had a market cap of $700M the share price would be $6.

RCR needs to focus on margin, which I believe is happenning. The mining and construction boom continues guaranteeing companies like RCR and MDP get to construct new mines and for many years regardless of what the world economy is doing.

RCR have already built a formidible sized company.

The company has just released an announcement essentially saying all is well and we have no skeletons in the closet.
Directors buying big time, Perpetual and Hunter Hall buying. The price drop from $2.95 to $1.12 is simply not justified.

Big Time Buy at these prices