Since the last update a week ago i have started buying few shares in anticipation of positive results for the year end, and just like you LT holders I foresee a bright outlook and an uptick in orders revenue and profit.
i thank all of you guys that contribute to the discussion and research of this little GEM on HC.
witnessing your belief in the outcome has encouraged me to invest a bit more than the lack of liquidity will normally allow, the temptation of risk-reward
On the other hand, the low count of shares is a blessing when SP starts to run, or when EPS is calculated from NPAT, also it is beneficial one day when a DIV is paid and few shares mean more cps
It is hard to find quality micro-cap companies on the ASX that are still Under the radar. the kind of companies that are increasing revenue, Ebitda on an annual double-digit and are on an upward growth trajectory with a low PE multiple.
I refer to these companies as rough diamonds once brought to the attention of MR Market they start to run on two expanding multiples.
First: profits go up by 100% YOY ( 500k to 1m to 2m ) that is 4 folds in two years
Second: Mr. Market turns them into Darlings for e.g if in Year X company declared 500k NPAT and was on a PE multiple of 9 = EV 4.5 m.
two years later a PE increase to 18 ( due to growth trajectory YOY) on NPAT of 2 ml= EV 36M
this is 8 folds or 800% in two years. a bit too rosy I know.
But the big money i hv made in the market was on such investments. way-way bigger than any blue chip or speculative buy. once a company is a profitable entity, reality becomes tangible and real numbers are in play.
Well, I hope I haven't spooked the SP for tomorrows report. I reckon the future is bright for this XTEK
GLTH or Chock Dee ( good luck in Thai)
XTE Price at posting:
52.5¢ Sentiment: Buy Disclosure: Held