The share price of 60c a year ago valued RFX at around 350m which is crazy seeing they had hardly any notable orders and there were manufacturing issues ect.
Investors realized the above and started selling out, most having made a healthy return on the rise from the low 20's.
Read @TerribleTadpole predictions below which aren't too far off the mark IMO.
At present Redflow is debt free and has everything necessary for a profitable business (a product, a market, an order book) except for one single thing; the production capability. I believe that in the absence of bad news the share price will escalate rapidly as evidence is produced of a working production line.
I always get predictions wrong, but here they are anyway... assuming all goes reasonably close to plan: 1) Share price stabilising near here; maybe 15c-16c. 2) The next substantive announcement will probably be about production of the first units for testing and QA with a time-line for the ramp-up into full operation; 25c-30c. 3) March '18 quarterly report will include significant sales volume and demonstrate that profitable operation is achievable; 40c-50c. 4) June '18 quarterly showing positive net cash flow. Full year '18 report with an estimated full year '19 profit. Depending on how the margin and volume looks I believe we could see around 75c.
Not saying the above will happen but for a successful small cap investment 4 things are critical:
1. Market leader in their industry (or growing).
2. Have a unique product that separates themselves from their rivals.
3. Profitable and cash flow positive.
4. Good management structure, with key members of the team willing to inject their own funds where necessary.
RFX have 3 out 4 (so far).
everton
RFX Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
(20min delay)