RDG 0.00% 2.2¢ resource development group limited

Hi mate, appreciate your comment in here. But I don't think it's...

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  1. 5,828 Posts.
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    Hi mate, appreciate your comment in here. But I don't think it's fair for RDG @ current market cap.

    You are obviously concerned about top line sales of RDG going forward. Now let's compare ANG with RDG of 2016 report. What ANG has is $188.17 mil revenue [great], low margin, high overheads which end up with $40mil loss for the year. They had similar level of cash then RDG but they also have $20mil debt on hand which we don't have. My question is if the business has low margin, high overheads, does top line sales really matter ? In finance term, bottom line & cashflow is much more important. However how much ANG worth now ? Almost triple RDG's current market cap.

    I'm not sure what's your definition of being "risky" in a investment. I see risk in ANG, but definitely much better situation in RDG. I bet you RDG is healthier then 99% of the spec stocks on the market & it's current market cap is far from being "risky". Or you can show me couple of more companies having "less risk" [I mean cashflow positive, low margin, positive before tax income, $13mil cash, not debt & less than PEx 4, EBITA multiplier less than 2]. I will pour my money to them.

    Final comment in addition, in modern working environment, less employees means less revenue but is it proportionally?
 
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