A very solid day! Highest volume of shares traded for well over a year, average price of well over 4 cents, and a intra-day run of up to 5 cents. Some profit taking in the afternoon meant a finish of 'only' 8% higher for the day.
The relatively high volume with a new share price high is a good sign that this rapid increase is well-supported. Fundamentally, we're still at a retrospective PE of about 4, or a forward looking PE of about 2.3 if you assume continued business as usual for continuing operations. So definitely a lot of room for further increases on those figures.
Then there's also the positive aspect of them having a large $13 million war chest that they'd indicated can be used for business acquisitions. Other sudden upside could come at any decent size successful tender announced to the market. Their previous performance shows they have the business acumen to continue making good profits in a steep industry downturn, so any potential recovery (as alluded to in the latest report) would justify a much higher market cap.
RDG Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
