Australia's largest stock trading and investment forum Australia's #1 stock forum

RFT

Click for more information

12.5%

0.7¢ rectifier technologies ltd

Given the first half of the year was underwhelming and doubts as...

First 22 Last

Share
Profile

Follow
Travis Cloke

832 Posts.

51

13/07/18

14:02

Post #: 34328655
Share

Originally posted by BRAGG ↑

The EBITDA/Revenue margin has been around 11% in the past but may improve on higher volumes. Interest expense and Depreciation are minor. So it all comes down to what is your estimate of sales and the P/E to apply.
It's all pie in the sky but I'm estimating sales of $10.5m for the year just finished, $$25m in the year underway and say $40m in 2019/2020. Applying a 12% margin, 25% tax rate and P/E of 25 would see the share price rise to 4 cents based on 2019 and 6.3 cents in 2020.
It may go to 6.3 cents and higher sooner if you subscribe to the view that the market looks 18 months to 2 years ahead and at some stage excessive optimism will push it above value.
The sales estimate is obviously the rubbery part of the calculation. Not even sure if the RFT plant in Malaysia can accommodate such a big increase in sales without capital expenditure. Hopefully it can and more.

Expand

Given the first half of the year was underwhelming and doubts as to whether recent announcements will be included in 17/18, I think a NPAT of $1million would be a good result with better expected in 18/19.

RFT Price at posting: 3.4¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

WC8

Leia pegmatite pulls up recoveries of 84% lithium for Wildcat in WA

IVR

Investigator Resources hits 8m @ 1.06% copper on-site Stuart Shelf JV project acreage

AI stocks: What to expect in 2024-25

Talking the US election, the spectre of Trump and what's hot on the ASX200: Wealth Within

BYH

Bryah gains $408K government rebate for work on copper target Narracoota

There are more pages in this discussion • 42 more messages in this thread...

First 22 Last

Add RFT (ASX) to my watchlist

(20min delay)
Last 0.7¢		Change -0.001(12.5%)		Mkt cap ! $9.673M

Open	High	Low	Value	Volume
0.7¢	0.7¢	0.7¢	$991	141.6K

Buyers (Bids)

No.	Vol.	Price($)
1	258377	0.7¢

Sellers (Offers)

Price($)	Vol.	No.
0.8¢	4566999	12

View Market Depth

No.	Vol.	Price($)
1	258377	0.007
20	5935888	0.006
12	2627942	0.005
2	1000000	0.004
2	765001	0.003

Price($)	Vol.	No.
0.008	4566999	12
0.009	1494512	4
0.010	343189	2
0.011	1359000	4
0.012	72003	2

Last trade - 15.40pm 16/07/2024 (20 minute delay)

RFT (ASX) Chart