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2.15%

$15.66 als limited

I definately detect a cyclical upswing especially in the mining...

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zubric

1,790 Posts.

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24/05/17

11:36

Post #: 24879354
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Originally posted by madamswer ↑

@blackcap,

The stock is rising because they said that sample flow volumes were rising.

Remember that this is largely a fixed cost business, so changes in volumes (i.e., Revenue) drop almost through to the bottom-line, resulting in large changes in profitability.

For example, on my modelling (and the forecast risks are not low for this business), the company will generate EBITDA, EBIT and NPAT of, respectively, $300m, $240m and $160m to $170m (depending on the tax rate).

Those figures represent growth rates of 17%, 30% and 40%, respectively, on FY2016.

And that's what has got the market excited.

For my part I think the cyclical upwsing has largely been priced in, given the stock is trading on a forward P/E of 20x and EV/EBITDA of 12.8x.

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I definately detect a cyclical upswing especially in the mining exploration sector but this will take time to gain momentum.
I think these guys are suffering from acquisition fever with little consideration for the fact that at some stage what they have acquired has to pay for itself.

ALQ Price at posting: $6.56 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $15.66		Change 0.330(2.15%)		Mkt cap ! $6.624B

Open	High	Low	Value	Volume
$15.52	$15.66	$15.29	$29.63M	1.903M

Buyers (Bids)

No.	Vol.	Price($)
2	26248	$15.54

Sellers (Offers)

Price($)	Vol.	No.
$15.66	12042	2

View Market Depth

No.	Vol.	Price($)
1	20	14.910
1	3835	14.880
2	1505	14.870
2	9925	14.860
2	5180	14.850

Price($)	Vol.	No.
14.940	1121	2
14.950	10000	1
14.960	1505	2
14.970	3835	1
14.980	8381	4

Last trade - 16.10pm 21/11/2024 (20 minute delay)

ALQ (ASX) Chart