Post by rephrain on Oct 11, 2015 3:04:56 GMT
Post comprehensive research about the next big winner ITT.
This post is about Alexium International.
Summary
I'm currently interested in Alexium Int., $ajx.asx, current price 1.02 $AUD, 300M market cap. Alexium is an australian chemical company creating flame retardant processes applicable to textiles, polymers, plastics and more. See this video for a better idea. It is going to be listed on the NYSE within a month.
You can find the complete annual report here along with lots of user submitted information but you must create an account (I think?). What I gather is they have multiple revenue streams up and coming, contracts with US DoD to be announced soon, as well as previously signed contracts (Murdock webbing) which begin paying out within the next couple quarters.
Positives
-Competitive advantages include: lower price, safer and environment friendly. This technology will replace bromine and fluoride based flame retardants.
-Patented technology
-Huge potential market and new product pipelines currently under R&D
-Trial production ramp up successful
Negatives
-Almost no revenue on the last report. This bothers me a lot although it is the only negative I've come across. I speculate next Q revenue in the 400k-600k range (up from 50k) which will probably disappoint. The CEO has stated that they have signed contracts and will break-even starting q1 or q2 2016 implying 3-4M revenues per quarter. 300M market cap, 12M FY16 revs gives Price/Sales of 25, which would be adequate pricing for growth.
Questions remaining
They're filing 4c this month. What is a 4c report?
Does a NYSE listing usually pop up a stock? It seems like the intuitive answer, but I've read the opposite too.
Overall rating
4* (Buy)
I recommend the stock as either a long term hold or just wait out possible volatility of the next couple quarters and confirm that management can shore up the sales they claim. I will update if I enter a long position and keep track of my performance with regular updates.
Happy hunting.
This post is about Alexium International.
Summary
I'm currently interested in Alexium Int., $ajx.asx, current price 1.02 $AUD, 300M market cap. Alexium is an australian chemical company creating flame retardant processes applicable to textiles, polymers, plastics and more. See this video for a better idea. It is going to be listed on the NYSE within a month.
You can find the complete annual report here along with lots of user submitted information but you must create an account (I think?). What I gather is they have multiple revenue streams up and coming, contracts with US DoD to be announced soon, as well as previously signed contracts (Murdock webbing) which begin paying out within the next couple quarters.
Positives
-Competitive advantages include: lower price, safer and environment friendly. This technology will replace bromine and fluoride based flame retardants.
-Patented technology
-Huge potential market and new product pipelines currently under R&D
-Trial production ramp up successful
Negatives
-Almost no revenue on the last report. This bothers me a lot although it is the only negative I've come across. I speculate next Q revenue in the 400k-600k range (up from 50k) which will probably disappoint. The CEO has stated that they have signed contracts and will break-even starting q1 or q2 2016 implying 3-4M revenues per quarter. 300M market cap, 12M FY16 revs gives Price/Sales of 25, which would be adequate pricing for growth.
Questions remaining
They're filing 4c this month. What is a 4c report?
Does a NYSE listing usually pop up a stock? It seems like the intuitive answer, but I've read the opposite too.
Overall rating
4* (Buy)
I recommend the stock as either a long term hold or just wait out possible volatility of the next couple quarters and confirm that management can shore up the sales they claim. I will update if I enter a long position and keep track of my performance with regular updates.
Happy hunting.