On reflection, I will give an alternative opinion.
They are undervalued. A company that is turning over $400 million and is profitable and increasingly so, with potential for more income streams at greater margins should attract a higher share price.
Let's say that Net Profit should be of the order of $2.5 million this FY. PE should be of the order of 10 - 20. so MC should be $25 million - $50 million, or say 16 - 32 cents.
In the case of fabricated products, margins should be higher, but indeterminate.
If NMM were able to start a small alluvial operation of 5k - 10k oz/pa with a profit margin of $800/oz, that's another $4 - $8 million. So, $6 - $11 million profit. PE of 15 gives us $90 - $165 million, or 60 cents to $1 a share.
Quite possible.
But it won't happen without wider market scrutiny. We can dream.
NMM Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
