Have recently discovered this myself and taken a small position at av 2.2 cents. It's a bit of a gamble since so much depends on the last 6 months of trading. The last half-yearly showed them managing a decrease in contracting work while maintaining profitability, so that needs to continue. Or even better, some sign that business has picked up would be great. However, with no market releases about contracts, it's impossible to know. Some companies pump every little piece of news, while some sit on it. Or perhaps they're not getting any business in the current construction downturn...?
The balance sheet initially confused me, with a massive amount of cash held. However, this pretty much exactly covers the loans to directors, so they're running close to a net zero asset value (if you take the ultra conservative approach of counting their liabilities and discounting their receivables). That said, if they're continuing to run a profitable business with good revenue and a reasonable margin, then I see no reason the market cap shouldn't be 2-5x what it is now. This is clearly a period of transition for the company following the 'reverse take-over' of Centrals in late 2014, and the market clearly doesn't know which way it's gonna go.
There's also the fact that top 20 shareholders have something like 95%, so there's not much left for free trading. It also begs the question of whether the directors/executives are happy with their salaries and fees and interest on their loans, or whether they're going to try to build up the company in a way that will realise value to shareholders (i.e. also themselves). If it's the latter they're aiming for, then we (little holders) can benefit by snapping up as many of the 5% free float as we can.
RDG Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
