Smashed it today 4%: up up and away .. maybe ....
Printable View
Smashed it today 4%: up up and away .. maybe ....
Solid result and promising outlook especially in NA and AU markets. Listening to conf call and good amount of information given by CEO and CFO.
https://www.nzx.com/announcements/335755
Nice endorsement by Australian Ethical to increase their stake from 6.47% to 7.76%.
Eroad wins Air N Z innovation award today.
Further good sales for the first qr, 24% increase on annualised sales, over 100,000 units sold and now in use, good pipeline of growth this year, the AGM should be interesting for all.
ASM this Thursday...hopefully there will provide more updates on how Q2 is tracking.
Bit surprised they've not yet released the latest quarter numbers ending sep.
Quarterly out
Q1 US units added: 2904
Q2 US units added: 4345
Good stuff
Like the way they say the loss is down 97% on pcp
Goes with all the other large %ages quoted
http://nzx-prod-s7fsd7f98s.s3-websit...704/312463.pdf
Good stuff
Hmm - revenue growth not too bad (even better than the single and probably somewhat conflicted analyst estimated). Development of earnings (pardon - losses) might be on track for a small end of year profit.
Just wondering what happened to the non tangibles - nearly slashed in half. Did they had to write off the CFO's table calculator or something or is this just the new accounting standards? Not interested enough to check myself, but as a shareholder I probably would be.
Anyone still holding this one?
I have a very small holding which I have held for some time but the sp is just meandering along going nowhere and I am wondering whether to bail and invest in somethings that actually moves, preferably up ;)
Yes I'm in the same boat. I think it's time for me to move to something else.
I’ve been waiting (too long) but will wait some more. Planning on finally buying MFT with any profit. Definitely been an Opportunity cost mistake on my part with this one.
Out for a long time. While I think that the industry has some potential, do I fail to see whats special about this still small, loss making and, to be honest, not that fast growing NZ company to think it will make the race to become the Google of its industry.
Lets face it - collecting road user charges based on mobile data and GPS is not rocket science ... and if we combine that with fleet management, then there are just many larger and more experienced players around.
Best thing which probably could happen to them is that a better off newcomer to the industry buys them out, but not sure I would hold my breath.
Wasn't there a promising quarterly report a whole two months or so back? ERD looks to be moving in a nice direction to me, just because nothing much has happened for a few months (over xmas no less) doesn't seem like a great reason to bail out, nothing wrong with quiet achievers.
MFT is great, but it ain't cheap. Maybe later in the year...
Hope you are right and it is indeed a quiet achiever and it does very well for you. I have held ERD for quite some time for no particular benefit hence my decision to bail. Sure MFT is expensive but I have done very well out of it so far, it just chugs quietly along in the right direction so its been a good long term hold for me. Hope it continues to chug along quietly :)
This one still under the radar, no news is good news? Jarden recently in to it, CFO buying a bit
http://nzx-prod-s7fsd7f98s.s3-websit...027/318872.pdf
Thoughts?
Tiny amount topped up
Though looks punt level
Markets typically don't like loss making companies with dropping growth rates - particularly in a bear market.
Forward PE (if we believe the optimistic analyst prediction for 2022) is still above 50 ... and earnings CAGR is going down (i.e. negative).
Pretty sure there will be better buying opportunities ahead - though not sure whether there will be good buying opportunities, if you see what I mean ;);
But obviously - I could be wrong, Trump might introduce wide spread road user charges in order to annoy his supporters and to lose the next election and for some reason the David under the suppliers of this charging technology might win.
Thanks guys, more or less how it looked to me but wanted to be sure I wasn't missing something. Better opportunities ahead and elsewhere as you say...
Hmmmm. Good result coming? Not another leaky ship....
someone knows something....
I have no faith in the FCA when I see movements like this.
Eroad was deemed an essential service during lockdown, and rightly so, knowing where your staff are is now more important than ever in a Covid world. Been stocking up on these beauties for a while now.
Shows i've been in the UK for too long!
Eroad had a bit of spotlight from FMA in 2018 and no doubt, risk & compliance measures would have increased since.
https://www.stuff.co.nz/business/107...ng-prosecution
Reading this article, perhaps trades under $50k do not come under scrutiny.
Am I right that FMA has so far brought only two cases relating to insider trading ever since it got additional powers in 2013?
LOL. Are we just observing the creation of a new conspiracy theory?
Just wondering whether there could be as well a harmless explanation for this actually quite insignificant (low volumes - 160k in two days - and it appears the "peak"is already over) SP spike:
It appears that in the first week of June one of the two analysts following this stock increased his (or her) recommendation from outperform to buy and increased the "consensus" SP target from $3.40 to $ 4.20:
https://www.marketscreener.com/EROAD...126/consensus/
Now - obviously - we all know that analyst recommendations and SP targets are as good as any horoscope ... but it appears one or two smaller retail investors didn't know that and invested some petty cash into a handful of ERD shares after the change of the analyst recommendation resulting into this exciting spike.
Call that as you like, but it has certainly nothing to do with insider trading. Anybody is allowed to read horoscopes and act on their recommendations. Whether it is wise to do that is another question, but it is clearly not illegal. Same with publicly available analyst recommendations.
Discl: neither holding nor conspiring :):
Both theories are plausible, I guess.
disc: not holding, just indulging.
Good growth in revenue and great to see the company make a profit. Only question I have is why NTA more than halved?
Not really following - but from a quick glance over their balance sheet it looks like they significantly reduced cash (negative cash flow) and increased intangibles.
Not sure this alone would result in halving the NTA (did it?), but it clearly won't help to support it.
is too much money being spent on R&D? what is the return on research capital? are they better off taking over similar SaaS products and modifying it?
Disc: hold none, but may start researching.
An interesting question. I find it hard to quantify, however as the tech is not groundbreaking and there are plenty of other players in the market it looks to me like they are going for value added products to enable companies to use their system as a one stop shop.
In my experience once this tech is implemented in companies and staff have become proficient with its use they will be reluctant to change.
Totally agree, implementing a new system, training, etc is a huge cost in time and money, so businesses will be reluctant to change unless given a good reason, and one reason may be a new product that just does more. So Eroad’s challenge is to give that chocolate box of options to their existing clients, so they won’t stray, and to do that they need to keep developing new products. 95% retention is pretty damn good, just need to embed themselves into a companies infrastructure so jumping ship will be too painful ;)
Huge potential in Aus, getting a bit of momentum in the US, solid earnings in NZ, possible listing on the ASX, nice.
I'm listening to the investor presentation now. Market seems to be liking the announcement.
Key takeaways from the presentation (some questions came from Craig Investment, Jarden, and ACC)
- NZ – 21% growth in revenue yoy, inroads in Australia and US. Sales pipeline promising but lumpy in my view
- Continued growth in subscriber and monthly output
- US is now an established market, however numerous challenges due to current political and economic climate
- Future contracted income 14%
- R&D to be kept within 18-22% of revenue
- Strong US/NZ $ helped
- Maintaining consistent cashflow $12M
- Privacy is a major theme – within NZ and Australia; will add to legal costs
From memory, IPO was $3. currently trading at $3.10. previous estimates from brokers were approx $3.20;
I'll form a view over the weekend.
Disc: Hold none
I'm pretty impressed with the numbers and results. Second only to Pushpay in this current climate.
jarden slapped $4.49 on ERD.....
NZX-listed fleeting tracking company Eroad is ready to hit the road, according to Jarden.
The wealth manager maintained its "outperform" rating following Eroad's full-year earnings on Friday, and upgraded its 12-month target price from $3.40 to $4.49.
Jarden analysts Wassim Kisirwani and Wilson Wong say Eroad's current valuation is "punitive" and based on historic issues.
"The business is significantly lower risk than it was five years ago, and with its market value [$221m] largely unchanged, we see a compelling investment case" the pair say.
I agree with the analysts that the current value of the share looks better now than 5 years ago. However - we don't really know whether the share was good value at that time, do we? Or should I say, we know it was not good value 5 years ago?
From my perspective - ERD's technical solution is not rocket science, and last time I checked they have not been under the top 3 solution providers in their growth market (US) either, i.e. they do have a number of more successful competitors in terms of volume and revenue) ahead of them.
I assume they will survive (at least in Australia / NZ), but whether it will be them who takes the amazon price of the RUC solution providers in the US ... who knows. I feel the the risk for them trailing the pack is not properly priced in at this stage, but hey - this is subjective ...
Discl: don't hold, but still following (on my "curiosity" watchlist);
Saas increases from $55 to $58 permonth.....CEO mentioned about covid 19 track n tracing app....
LOL - Covid 19 tracking ... is this where their expertise is? No wonder they wrote losses year after year for tracking a virus which only emerged end of last year :p. Must clearly be ahead of their time ...
Anyway, happy to leave them all for you :); From a personal perspective I am a bit worried to invest into companies who promise success for the last 10 years or so and are still writing losses (even if this year was close).
Sure - history does not repeat itself, but not sure whether the odds are good for this company being the next big thing.
GLTAH!
yes - need to watch progress on the US given geopolitical climate, economy, competition - and significant costs for S&M.
Will reach saturation in NZ at some stage.
One swallow doesnt a summer make.
Disc: hold none. watching from sidelines
dont shoot the messenger guys...posting from the nz herald....got premium subcrip....
Nobody doubted the veracity of your statement :): However - not everything companies claim as a product benefit later on turns out that way ;) ... and - if you check on their own webpage, then you find out that their Covid tracing is a manual process which needs to go through Eroad and allows to find out which of the vehicles of a fleet went where and when:
https://www.eroad.com/blog/eroads-co...acing-service/
Easy peasy - this is how a NZ high technology company solves the customer problem of Covid tracing ...Quote:
How it works:
- You have an employee with a suspected COVID-19 infection.
- Contact EROAD with your employee’s details, the vehicle(s) which they were in charge of and the time period to be traced.
- We will run a report – which details every stop longer than 5 minutes that the vehicle made during a target time period.
- For each stop we provide Latitude/Longitude location, a geocoded address, the geofence name if within a geofence, and the stop duration.
- For each stop we cross reference other vehicles in your organization which were stopped in the same location, in order to provide a list of vehicles (and therefore other employees) who may have been in contact.
- If you are an EROAD customer and would like to use this service, please send your request to support@eroad.com. In the subject line please write “Contact Tracing Report.” In the body, include carrier name and truck number.
... or are they just grasping for straws ...?
Quarter update in less than 2 weeks. We shall see the Jarden's boys are right or not regarding thier valuation...time will tell
BP
This could also be said about A2?
"From my perspective - ERD's technical solution is not rocket science, and last time I checked they have not been under the top 3 solution providers in their growth market (US) either, i.e. they do have a number of more successful competitors in terms of volume and revenue) ahead of them"
Don't hold
Erd is growing.......$81 m revenue ended 31st March 2020.....market cap $220m..
In my opinion...current modern logistics transportation is lacking tech supporting the business.
So..ERD will be in a good position in supporting this road.
Just like PPH in the churches
Not quite.
Obviously - quite different industries, quite different customer groups, A2's product promises for some customers health benefits (which, unless you count the Covid tracking, you can't really claim about ERD) and A2 do have a moat with them having being the first in the space and holding some relevant IP. I think as well that A2 is in their space (related to the relevant product range) still by ways the largest.
ERD has none of these benefits.
u see eh....SKO...making loss...less revenue than ERD....however market priced in SKO higher than ERD.....
Market is a beast!!!
I am hearing u..... people are tend to buy companies that make Jack all... rather than revenue n good profit....
covid no covid...no problem. ERD is a resilient business.
http://nzx-prod-s7fsd7f98s.s3-websit...205/321425.pdf
up 9% today and 16% last 3 days on no news that i can see...
apparently Craigs put $4.50-ish target price on it.
I did think the AGM was more a steady the ship and tread water, with trucks parked up and not being able to press the flesh to get sales, so sold a small parcel thinking nothing to see here for 6 months... ooops, got that wrong. Still got a significant holding though, so happy, would have been happier if I hadn’t have sold. ;)
So they are going to list on the ASX, hmmm, I got the distinct impression at the AGM that this plan was possible but not being considered in the short term.
I have access to a very detailed and comprehensive broker report on EROAD. Quite positive on the future outlook. Please DM if you would like a copy to read.
discl. holding
trading halt...
'Street Talk reporting EROAD is preparing to put a NZ$25m proposed share placement to Australian funds, which would coincide with the ASX listing and a potential selldown from existing Kiwi investors to try to boost liquidity. The company is also understood to be raising another NZ$5m via a share purchase plan to support its "growth aspirations". '
https://www.afr.com/street-talk/beep...0200914-p55vbo
https://www.trucker.com/drivers/pres...s-for-truckers
always looking at ways to add value...
Trading on the ASX commences 12th October. Details of SPP...
The placement is being conducted at an offer price of NZ$3.90 per share (AU$3.59 per share),representing a 10.3% discount to the last close price on the NZX on 14 September 2020 of NZ$4.35;and 9.0% discount to the ten-day volume weighted average price on the NZX of NZ$4.29.
has anyone received notice of how many shares they were allocated in the SPP yet?
EROAD’s Share Purchase Plan closes oversubscribed
6/10/2020, 8:41 amOFFER6 October 2020
Transportation technology business EROAD Limited (NZX & ASX: ERD) (“EROAD”) today announced that its NZ$8m Share Purchase Plan (“SPP”) closed oversubscribed. The SPP received strong shareholder support with EROAD receiving applications totalling approximately NZ$18.46 million, over 230% above the amount sought.
Given the significant demand, EROAD has opted to accept oversubscriptions of NZ$3 million, increasing the size of the SPP to NZ$11 million. Applications will be scaled on a proportionate basis in accordance with the number of EROAD shares held by applicants on the Record Date (16 September 2020). Refunds of the surplus application amounts paid will be made to applicants on or before 14 October 2020.
Looks like I got 57% of my requested shares, hoped for more but that’s ok. Now waiting for my refund. With a large war chest, should be an interesting year for Eroad.
Thought I was going to be scaled so asked for less than I should have......Computershare tells me I got the lot. Happy though.
Logged into https://www.computershare.com/nz
I think everyone will have got 44.2% of their existing shareholding unless they asked for less.
This is what I got on the portfolios I administer and Eroad said allocations will be in proportion to existing holdings
Yup that's what I got too, note Director Stuart got $50k in the SPP worth which is a bad look. He should have applied in the placement. As always would have preferred a rights issue especially in cases like this where there is no immediate need for the cash but seems companies are more beholden to their fee reaping advisors rather than their shareholders.
Always try to buy into capital raisings when the money is used for growth.
Keep on truckin Eroad!
$360M cap @ $4.40
Just made $1M profit.
These guys have been at it for long enough now.
Beginning to look like a charity to their customers, another Rakon.
Bit old now but I am wondering what others thoughts are on EROAD's 26 November 2020 investor presentation.
At the time EROAD had made a $1m NPAT in the prior 6 months ended 30 September 2020. Since the announcement its market capitalisation has increased from $360m to $433m (+20%). For comparison, the change to the NZX50 index is approximately +6%.
I hold a decent amount of EROAD shares and given the sharp increase over the last 12 months I have been reviewing the company in case I should be selling. My first inclination was similar to Getty's, that the profit might not be sufficient and growth does not look to be fast enough to justify the current share price.
However, I wonder if NPAT, EBIT and EBITDA are not the best measures of earnings to use when considering EROAD. The company certainly seems to think it should be considered differently. Rather than one of those measures of earnings, EROAD seems to prefer a focus on 'free cash flow' (e.g. page 22 of its November 2020 investor presentation). I consider there is merit in this approach, particularly with all the estimation that is presumably required to prepare a P&L for a company like EROAD. Cash flow is much more tangible.
Going to the waterfall at page 22 of the investor presentation, EROAD (and presumably Alex Ball as its CFO) wants us to focus on the $4.7m free cash flow in the six months ended 30 September 2020, and then seems to want us to add back the $5.6m investing for future scalability. This would be added back on the basis that it could have been not incurred, while (presumably) not having this impact EROAD's other current earnings. Similarly, Australia currently has negative cashflow and could presumably be exited without impacting the cash flows in the other regions. Assuming that these investment costs are value enhancing (neither wasted nor needed for ongoing current earnings, but are instead for future growth), I consider it may be reasonable to add them back when undertaking my following analysis. Adding these amounts back results in 'adjusted' free cash flow of approximately $11m in the six months ended 30 September 2020. Doubling that gets you to approximately $22m 'annualised' free cash flow.
The term 'free cash flow', as referred to by EROAD, seems to be free cash flow to equity (being post interest and post cash paid tax). Therefore, it should be compared to EROAD's market capitalisation of $433m. This means EROAD has a market capitalisation of approximately 20x its annualised adjusted free cash flow.
This multiple does not seem particularly expensive for a company like EROAD, although I consider further growth (both as a result of the $5.6m investment and otherwise) is required to justify its current market capitalisation. However, based on past experience, it seems likely that EROAD will continue to experience growth. The important part will be that the growth is to free cash flow, rather than to just EBIT or EBITDA. Be suspicious if EROAD ever changes its focus from free cash flow to just EBIT or EBITDA!
I currently hold quite a bit of EROAD (>5% of entire share portfolio). Given this existing exposure, I don't plan to buy more. However, based on this multiple (which is unfortunately a little crude) I am also not inclined to sell at the present time (and would consider buying shares if I didn't already have a reasonable exposure).
What are others thoughts on EROAD? It hasn't had much chat on here for a while. It also seems to be flying under the radar as far as picks for 2021 – is this because people consider it to be overpriced or is it underappreciated?
Te
Disc: As above.
PS:
Getty's reference to Rakon is kind of funny, as Rakon's share price has rocketed up since 26 November 2020 – up 95% as at its closing price on Friday (albeit a bit down today as at the time I post this). I hope this is like Rakon!
:laugh:
Well, yes - the short term trend looks really sexy, doesn't it?
Attachment 12216
And here is a secret - trends always continue in the direction we want them to go :t_up: ... until they stop :scared:.
With companies like ERD it is better to look at the big picture:
Attachment 12217
Not so sexy anymore? ERD did burn already through lots of shareholder capital. Sometimes their story sounds comforting ... and often it does not.
Who is to say where they go from here, markets and politics are fickle and competition is strong. I recon the next spinner in the wheels is sort of overdue for them.
If you think that they offer the best road tax solution since the invention of sliced bread ... think again. Their solution is not rocket science. There are as well plenty of competitors on the market and some of them seem to have significantly more experience in e.g. fleet management as ERD as well as better customer reviews.
Anyway - I took them off my watchlist .... I found it over the years easier to lose money with them than make it. Not my type of investment :):
Hi BP,
Yep, I tend to invest more on fundamentals rather than trends. The short term 'sexy' trend was more of a reason for me to sell than buy. Or more precisely a reason to check whether I should sell or hold.
I have held EROAD for a while now, through many of those ups and down. I originally acquired a reasonable shareholding in July/August 2016 at between $2.05 and $2.08. I then topped up my shareholding in the October 2020 rights issue at $3.90 – I took the maximum allowance of 44% (post-scaling).
Since then, on 29 December 2020, I sold 16.8% of the total shareholding at $4.90. I did this because, with the recent price increase combined with the rights issue, EROAD now represented a relatively large proportion of my total share portfolio for what was no longer a conviction shareholding. That sale was done without much fundamental analysis. The intention was to go back and look at the fundamentals and see whether I should sell more.
Having looked at the recent announcements etc, I am not convinced it is a sell – it looks like a hold or possibly a buy.
I can understand your scepticism with the company, it has certainly not lived up to the hype in the past. Still, it doesn't seem to be in a bad position if it can maintain and grow its current free cash flow. I also like what they did in that last investor presentation to help shareholders understand the value proposition.
I would be happy to sell if there's a good reason. Following my own analysis I came here looking to see if I had missed anything but was surprised about the relative lack of comments. As a rule I don't generally post much (I last posed in May 2019). I posted the above primarily to see if others had any contrary views and to see if I was missing anything by focusing on free cash flow.
Hope all is going well for you and all the best in 2021!
Te
Bit of a shocker quarterly update on Friday. USA lost units which was a big big surprise.
Quarterly UnitsTotal at 30/09/2020 to 31/12/2020
New Zealand 84,526 to 85,597 INCREASE 1,071
North America 35,294 to 35,255 DECREASE -39
Australia 2,373 2,625 to INCREASE 252
Total Contracted Units 122,193 to 123,477 INCREASE 1,284
So qtr on qtr growth of 1%. USA loss blamed on COVID and political upheaval. Not sure about that.
Will be interesting to see how the shareprice tracks next week. Down 6% on friday. I don't hold but its on my watchlist.
With over 430,000 dead in the USA in one year and businesses struggling, not surprising that they lost a few. The test is next year, when the huge growth potential in the US needs to be realised.
The thing that does surprise me is the lack of units in Aus. It would be good to see some Corp uptake there, no COVID excuses in Aus.
Prob will see a little fall back in share price, but confident in their ability to win and service big Corp contacts (800 units due nxt mth), with a 95% retention.
Good post Te Whetu, agree with your sentiments, don’t think you’ve missed anything significant.
One of my largest holdings, and a steady, safe hold for me in this year of uncertainty.
Well, this announcement brought the SP clearly down from the stratosphere. Bouncing now along the MA200. Will be interesting, whether this holds.
Overall - no matter what people think about their technical solution ... ERD is in my books still not a cheap share with a forward PE of 77 combined with quite modest growth.
As well, based on personal past experience - they have been quite good and successful in the past in disappointing investors - several times.
I would be interested on which basis are people valuing this share to find for themselves a justification to buy or to hold.
I first bought shares in ERD in Nov 2016, Since then, my rate of return has been 15% pa, and that takes into account the recent 30% plunge in share price from 5.4 ish to 4.2, not spectacular but not too shabby IMO.
I look for sustainability of business, and ERD is one of the few tech companies that operates in the regulatory, compliance and H&S sectors. These sectors are not optional areas of a business, they are a requirement, and companies want to engage with a company that can manage these risks so that they can get on with making money. In other words, ERD supplies a necessary product. I note that they were designated as an essential service during COVID, and would be interested to know what % of their customers were also designated as an essential service.
ERD changed their business model to a subscription service, which makes sense if you can retain customers, and they have proven that they can do that with a 95% customer retention rate.
They obviously work at keeping their customers happy, and as their relationship develops, so does the opportunity to upsell their services, and this brings me to their investment in R&D. The currency of their tech is important, and I note that they have a policy of capitalising their R&D to the tune of $40m. Valuing an intangible asset such as R&D is highly subjective, but employing this strategy will probably reduce their tax bill, and makes sense to me.
Note 5 2020 AR shows $54m revenue, of which $25m is from the USA, or 35k units out of a total of 123k. So almost 30% of their units, and 46% of their revenue is coming from the USA, and we all know how big the USA market is. The fact that they seem to be making more money from the USA than NZ on each unit is a good sign.
As for online reviews posted on dubious sites by anon people, I’m not sure that this will form part of a credible tender process for corporate accounts. They’ll probably look at references from existing customers - did I mention the 95% retention rate.
So to sum up, they have a compelling elevator pitch, understandable business model and provide a credible solution in a highly regulated environment. A solid, medium growth company IMO, and that's why I've invested in them.
$5 today, up 6% on news that a deal has been done with a 4000 unit client.
Sounds good, BUT...
If they were installed tomorrow, instead of over many months, I'm assuming $10 a month net profit per unit, =$40000 pm, or $480K pa.
At $5, old PE is 160, so if this is their biggest customer, when will decent profits be made?
It's their biggest Australian customer, not their biggest customer.
Over the course of this calendar year, I estimate this one customer will add $1.5m+ annualised revenue (2500 units at $50+ revenue per month). EROAD tends to make around 65% EBITDA margin on additional revenue (prior to corporate and development, which I would not anticipate to be materially impacted by this one customer). Therefore, I expect this customer will add around $1m to annualised EBITDA. There might be an increase in depreciation and amortisation, but I would not anticipate a major increase.
Once fully implemented, I expect this customer will take the Australian operations from net losses to net profits.
I'm quite interested in seeing the Q4 unit numbers, which will presumably be released later this month. The net loss of 39 units in North America in Q3 was a bad sign. Hopefully we'll find out if that was a one-off blip, with growth returning, or if it signalled the point where the North American operations began to stagnate or (worse) decline.
Well said..... and of course Aus penetration had been a sore point for ERD, hence their re-launch there. So this announcement is more confirmation of steady progress now being made in Aus, but as you say, they need to notch up a few more successes particularly in USA.
Disc- I don't hold, but hope ERD succeeds.
Someone's hit the road.
Up 12.2% to $5.70 on good volume
Seems that NZX Reg need to issue a speeding ticket - no news??
A $200m acquisition going to be transformational for Eroad
http://nzx-prod-s7fsd7f98s.s3-websit...595/350264.pdf
ERD's market capitalisation is currently $503 mil.Add $200 mil for the acquisition will take it to $700 mil.
Current PE 229.48.I do not expect the acquisition with more shares on issue will see the PE lowered.
Therefore over 200 years [currently] future earnings built into the share price seems a lot to me.
Wow - just read the announcement:
Isn't this amazing? Politics failed so far to achieve this "safer, more sustainable and more productive society" - and now these two minor companies are aspiring to do it. Just watch them ... :p ;Quote:
Both EROAD and Coretex aspire to create a safer, more sustainable and more productive
society
Oops - there is however something to be said about the achievement of aspirational goals :);
Well one broker seems keen.?
Dear Client,
You are receiving this email as you are currently on our Investment Opportunities list.
E-Road (ERD) has announced that it is making an offer of shares at a discounted price of $5.58. This represents a 9% discount to the last closing price.
This is an extremely fast issue, with bids due no later than 3pm today. Bids cannot be accepted after this time.
We anticipate that there will be significant scaling with this issue, and it is possible that allocations will be minimal as priority will be given to existing shareholders with a shareholding greater than 32,500 shares.