RCR 0.00% 87.0¢ rcr tomlinson limited

fairfax press recommends a great bargain stock

  1. 12 Posts.
    Like VDM the following was published in both the Age and SMH and was highly recommended as a great bargain -

    http://www.theage.com.au/news/money/shares-to-keep-you-afloat/2008/02/09/1202234223806.html?page=fullpage#contentSwap3

    "After trading as high as $2.98 in November, RCR's share price hit a low of $1.67 in January. Based on 2007-08 forecasts, this represents a price-earnings ratio of 7.3 times earnings. Investors get the best of both worlds with RCR, a multi-disciplined engineering company that provides services and machinery for mining and general infrastructure projects.
    It is involved in inspection, maintenance and repair work that tends to generate a reasonable level of recurring income, thereby providing a degree of earnings certainty. At its annual general meeting in October, RCR management indicated it had projects to the value of $80billion in the pipeline.
    A significant development for RCR in 2007 was the $43.7 million acquisition of Positron. Positron has a strong position in the provision of electrical services to the infrastructure sector in NSW where its expertise in the construction and maintenance of substations and switchboards is well-regarded. This is a new market for RCR but it fits well with its 2006 acquisition of VRBT, a company with a significant alliance contract for power-station shutdowns.
    RCR has a robust balance sheet with strong cash flow and minimal debt, giving it an opportunity to make further acquisitions in an industry where consolidation is the trend."

    BUY, BUY, BUY
 
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