Hi , First post on hot copper.
I am not an analyst or accountant, but SHE does stand out as value Company, I am holding SHE in a few entities.
SHE annual reports were released in 30/06/2021, 30/06/2020, 30/06/2019 with half yearly reports near the end of December. Hence I expect the next annual report will be around 29/06/2022.
Comparing the expected “profit before tax” / “enterprise value” it appears that there is a substantial increase compared to previous years “PBT/EV” ratios.
The expectation of Profit, cash was inferred from SHE quarterly reports. But it appears only the half yearly and annual reports make it into large data sets that power web stock screeners and WEB investment pages, (e.g. simply wall street) hence a theory is that after a few days to a few weeks after the annual report (end of September) the high “PBT/EV“ ratio of SHE will picked by market screeners and analyst and we might see a preannounced up lift in the share price as it comes out from under the radar. Currently the values in data sets are 6 months old (annual report not out yet) causing SHE to be below the radar. Upon its 2022 annual report being released and the figures being disseminated Its “PBT/EV” would have increase from -0.03 to +2.26 over the year, i.e. from losing money to near enough the best ratio on the ASX.
The risk are SHE issues more share leading to dilution ,or spends the cash it has between now and end of September reducing the ratio, but the ratio would still be very good if it spent its cash.
If you filter out all ASX companies by having sufficient profit margin (moat) and other safety nets, SHE comes out as being the best value by a large margin.
Risk vs rewarding, It is difficult to imagine SHE share price dropping below 0.0125 as then it would have more cash than its market cap, and some body could buy the whole lot up taking a profit, so downside is small, but their maybe a Large increase in share price due to its current value ,
At SHE current share price of 0.016$ per share
For each dollar you spend on SHE 0.75$ is in left in SHE as cash (so you actually spend 0.25),
and maybe a 0.54$ profit would have been generated year ending Sept 2022.
Similar thinking allowed me to take large profits with GRR a few months ago.
GRR before its price rise a few months ago also presented a large (PBT/EV) ratio but not as large as SHE.
I brought GRR at 0.57 AUD, and few months later it rose to 1.79 AUD plus a large dividend, GRR was chosen due to its perceived exceptional Value with a PBT/EV value of around 0.7 , SHE upon its annual report might have a ratio of 2.26 much larger than GRR was before it rose.
I have copied a table below from that I used for SHE.
