Entry for STT- RCR.AX Fundamental entry Reasons
Solid well managed company (YoY eps increases last 10 yeaars except 2009, no capital raised since 2008) getting a re-rate having now shown that it handled large takeover of Norfolk last year.
Summary
RCR.ASX - RCR Tomlinson - Ordinary Fully Paid
Total Issue: 137,779,238
Market Cap. $476,716,163 (@346)
EPS: 31.89 cents
P/E Ratio: 10.85
Div /Share: 10 cents
Div Yield: 2.89%
1-Wk Range (Low - High): 317 - 347
Business
RCR Tomlinson Ltd (RCR) provides integrated engineering solutions including engineering, construction, maintenance and repair services to customers in the metals, resources, oil & gas, power, and energy sectors. 4 Divisions:
RCR Mining,
RCR Energy,
RCR Resources,
RCR Infrastructure/Power Financial
Year ended 30 June 2014, RCR revenues increased 49% to A$1.3B.
Net income increased 16% to A$43.3M.
Revenues reflect the revenue of Norfolk which it acquired last year – the market was holding back to see how this was handled – note the P/S ratio of only 0.36
The Norfolk acquisition, although low margins, it adds to the quality of its earnings by the size of the recurring revenues
Entry for STT: Technical Entry RCR.AX
Reason:
Full annual result announced and market now re-rating out of a 11 month downward channel
Short term Target: $ 4.20
