rdf in europe, page-6

re: ris rdf making the dollars ??thanks Arthur
Intersuisse have recently put out a second report on RDF. Can be downloaded from RDF website.

Profits after tax were

2003/4 4M EPS 5 cents
2004/5 12M EPS 14 cents
2005/6 21M EPS 25 cents

My estimate for 2006/7
31M EPS 37 cents

As you can see EPS is growing very rapidly and even though current PE is quite high the stock is still cheap.

I would not be surprised to see this stock trade on a PE of around 20 for a few years to come. On 2005/6 earning that equates to a share price of $5 and $7.4 the next year.

It is really hard to see what can go wrong with this one. Every month as they increase their installed base profit grows. My estimate is that monthly profits are currently increasing by around 70K every month.

The stock price has run hard in last few months and may need to take a breather at some stage. I suspect a minor correction but not much. More likely to trade sideways for a while before heading futher north. The scrip in this one is getting very tight. There are a lot of long term holders who are not sellers and a lot of the stock being traded is going into long term hands making the script even tighter