As the post placement washout looks to come to an end, price action is starting to set a nice base.
Some quick thoughts here; Current EV of $5mil + $3mil cash + cash flow breakeven delivering $7mil+pa of revenue with a good portion recurring.
Iam still adamant we can see an EV of $20mil+ (3x+ of the share price) for this company in the not too distant future. What would assist in on market interest to drive this IMO:
- Significant contract wins / Tier 1 partners with multiple site and service requirements, new verticals being entered
- Strategic alignment from a company that has a significant customer base for RKT to cross market to. This may also be consummated via a strategic placement to such a partner at a nice premium to the price
- Greater market coverage and broker interest that would likely be assisted by research
- A takeover bid....
Worth a revisit of the technical setups over a few timeframes...
Daily - short term
Price action showing early signs of a breakout of the downtrend that started last October. MACD positive cross in effect and heading back to the important 0 control line + RSI breaking out. Clear 1.3c and the door is open for a move back to the 1.7c mark and potentially new highs.
Weekly - medium term
A move above 1.3c will also see a positive MACD cross take effect = bullish structure
Monthly - longer term
The indicators setup being most encouraging as the MACD continues its slow ascent to the 0 control line, which once achieved could see a more substantive move take hold, which in the context of RKT would be v significant IMO. RSI continues to track the right way after a sustained period of oversold readings with plenty of head room before it's overbought
Add to My Watchlist
What is My Watchlist?
