most undervalued stock on asx

I assume the person selling at 4.7 is someone who bought in the high 4s on Wednesday who doesnt have the funds to pay and is desperate to get out. This is the same person who was at 4.7 yesterday.

The price really is an absolute steal. I re read wednesdays ann again last night and the 3mil profit really does across as a very conservative estimate. I believe that is the target that will be reached in a worst case scenario, that is with no growth and continuing its operational activities at current production levels.



What I have cut and pasted from the ann below was reiterated at the beginning and end of the announcement.

The forecast financials do not include:
• Upgrade of the kiln gas management system at Port Hedland to increase production and improve environmental performance;
• Upgrade of the front end feed system of the Thermal Desorption Unit (TDU) at Kwinana to increase production;
• Growth from potential acquisitions and joint venture opportunities; and
• Greater than forecast expansion and income stream from new technologies and services.


GROWTH / PROSPECTS (NOT FORECAST IN FY06 FINANCIALS)
• Expansion into eastern states and New Zealand markets;
• Increased production rates for the TDU with the potential replacement of the front end feed system and vertical desorber;
• Increased production rates at Port Hedland with the potential upgrade of the kiln gas handling system; and
• Acquisitions and Joint venture arrangements.


In addition TOX has said at Kwinana,

Preliminary engineering has suggested production can be increased by up to 5 times, with minimal increases in the cost of operation, from the replacement of the vertical desorber with an off the shelf horizontal desorber complete with manufacturers guarantees.

TOX should be trading at a pe ratio of about 20. Share price of around 12c would be fair.

Th last 6 months have been about consolidation.

The next few years will see massive growth. TOX has said in the ann, that the coming financial year will see Tox Free further consolidate its existing activities as well as aggressively explore options to expand into new markets, both geographically and with new product lines, to increase its growth.

It amazes me how stupid the market are selling at these levels.

By far and away the most undervalued stock on the ASX.

Cheers