Bullish Sign? - Bounced off 200 EMA, page-2618

Hello Pioupiou ...I do not want to naysay you but “you do not want to excite the horses”?
Wwhhhhhhh..ell let me tell you, although I feel I am mostly stable, I shied at that, I really did!

And before I hay anything else, I also want you to know how much I genuinely appreciate all of your ‘horse sense’ especially at times like this when the status quo has changed.


...As I understand it you say the RCR acquisition - on a potential dividend-impact basis - may subtract a cent from a theoretical annual dividend stream while it is being integrated and then add a cent if all things relative to the acquisition remain equal and NPAT of that divsion is good ?
But beyond this fundamental reckoning is the view of “Mr Market” (the horse of a different colour) to consider?

Mr Market added about 13c to the share price since news of the acquisition - I think that’s around $24 or $25 million in two trading days ?
Using your theoretical dividend value that is 13 YEARS (minus one for integration) .worth of theoretical potential earnings per share.


You also say based on the company’s forward projections and a few good contracts it may be reasonable to project a potential market cap of near a billion dollars rather than the $748M market cap we are currently sitting on? (Roughly)

NRW seems to me to be at least worth that .
As a comparison Monadelphous market cap is currently $1.438 billion
Last year when it announced a strong annual profit ; “21 Aug 2018 · Sales revenue $1.784 billion*, up 41%. Net profit after tax $71.5 million, up 24%.” https://www.monadelphous.com.au/media/5640641/2018-full-year-results-media-release.pdf
It was trading about the same levels ($15.26,) but on a projection of lower earnings lost as much as a dollar (around 6.5%) during the next month.


Another comparison Emeco - current market cap $753 million....
It’s a company that rents mining equipment .
On November 19, 2018 it consolidated its shares to one in ten so it’s about on par with us - 323.21 M shares vs our 376M shares.
The price has surged in one month from $1.90 to $2.53 and it is currently sitting on $2.33 .
Last year it’s NPAT was $20.1 million on revenue of $381 million
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4wq+yRGZpf91ke92GA==

Ours was $42.2 million on revenue of $753.4 million
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4wq+zBaZruBxke92GA==

Doesn’t that mean we should be about the same price ?

Interestingly both Emeco and Monadelphous are very strong on maintenance contracts and Emeco may be directly competitive with some aspects of the RCR divisions NRW has acquired according to it’s November update : https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4we/yhaZpf91ke92GA==.
I don’t imagine either company is thrilled to see us collect the RCR division but I guess both if them would have had a chance to bid on it as well.