The last week and certainly today has presented an excellent (long term) buying opportunity for anyone with the cajones to buy into RQL.
I have been unable to take this opportunity being fully invested although would have loved the chance to buy a larger portion of this incredible company.
Incredible why??
First rate figures (High ROE, excellent operating margins, and low debt (and only through HP contracts, not bank)) a friend recently pointed out that they had negative free cash flow (cash flow - capital expenditure) although this is of course to be expected in their first years of business as they grow their range and size of different equipment.
First rate qualitatives. High barriers to entry, first rate management and a huge industry to grow into.
I don't believe it will take much longer for the larger investment community to wake up, perhaps their slumber will last until the half year reports and accounts?
I value the company at just under 70c so at today's price investors have a roughly 40% margin of safety before fair value is realised.
RQL Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
