Will Scidev exit its trading range ?

For one year, Scidev has been in a trading range of 0.60 to 0.90 $.
It is now again testing the upper end of its trading range (just reaching their pre-covid level).

Reasons why it may exit its trading range :
- their acquisition policy continues to make sense, as it enables them to diversify both in terms of final industries and customers,
- there is a better visibility on their future profitability thanks to their last acquisition (Haldon) which is already very profitable (FY 20 EBITDA margin of 38.2 %),
- still strong support from regulation for clean water,
- scarcity of "green stocks" with this kind of profile (high growth, profitable).

There are still short term uncertainties, like the risk that Q3 cash flow may again be negative (Q2 turned positive, mainly due to a large cash receipt vs previous quarter).
It is also quite tough at this stage to calculate a valuation for the company, as it is not obvious to estimate their margin at maturity (Haldon has a gross margin of 67 % vs 25 % for Q1 21 for Scidev).

Also interesting to note that their 2 main shareholders (Perennial and Australian Super) keep buying more shares.