Eureka Report: 75c valuation

Another tip-sheet writer talking up SDI  - Eureka have an SDI  research article out this afternoon.

Conclusion summary:

"Valuation and Recommendation The company believes it has the manufacturing and marketing capacity for $100 million of sales with minimal additional costs. Therefore, with FY14 revenue at around $65 million any increase towards $100 million revenue would produce a large increase in margins due to a larger percentage of sales falling to the bottom line. Management is focused on further reducing debt, although it is down to a comfortable 10% of equity. Assuming no major currency or silver price moves, we are forecasting an annual growth rate of 10-20% for the next three years. We have a Buy recommendation and $0.75 discounted cash flow valuation and target price."