As I mentioned I feel they may record EBITDA circa $16m for second half. With DA of $3m and interest of $700K that gives an 2HFY12 PBT of circa $12.3m. I think they will have residual $3m of tax loss cover thus tax at say $2.7m giving a NPAT of $9.6m for 2HFY12, or 3.8 CPS.
This is strong, but I feel that ongoing growth at traditional REL dewatering business, coupled with huge DSA 2H turnaround, could deliver this result.
Just my views.
Relaxan
PS if, hopefully when, they announce a Woodie Woodie contract extension, I suspect we will test your 50 cents, so you may not be waiting long re your Hold/Sell call.
I feel that this stock had a series of setbacks in quick succession which resulted in a flushout of sellers. suspect excess demand in coming period to drive price.Again just my view.
RQL Price at posting:
47.0¢ Sentiment: ST Buy Disclosure: Held
