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marketanalyst1: The Shandong Ruyi deal was always thrown in for free as it was not priced in by the market. So no change to the current fundamentals. The company is still undervalued on a gargantuan scale. ...................................................... Here's a recap of my previous post that demonstrates the undervaluation: . Richland Resources is an AIM cash shell with circa £280,000 cash and is valued at £1m; 3.6x cash value. • Nu-Oil and Gas is an AIM cash shell with circa £380,000 cash and is valued at £1m; 2.7x cash value. • Bould Opportunities was an AIM cash shell with circa £800,000 cash and was valued at £2.8m; 3.5x cash value. • Bagir Group is a well-established (59-year old) innovative clothing manufacturer with circa £1.54m cash, £45m annual revenues, and gross margins of 11.9%, is currently valued at £1.6m; 1.05x cash value, and zero consideration given to its considerable design, development and manufacturing business that boasts net assets of £10.98m ($14.2m). So, based on the above, here are three, hypothetical, valuation scenarios: 1. As an ‘AIM cash shell’, Bagir would be valued at £5.39m (3.5x cash value) or 1.70p per share. 2. As a company looking to put itself up for sale, and return cash to the shareholders, Bagir’s BOD would assign a base ‘sale price’ of £10.98m (net asset value) or 3.53p per share. 3. As a company within the textiles, apparel and luxury goods industry (sporting an average PE ratio of 21.1x), Bagir’s current PE ratio sits at 0.5x. However, were it to be valued in line with its peers, Bagir would command a market cap in excess of £65m or 20.93p per share. Thus, on all three scenarios, Bagir is still profoundly mispriced. Ruyi was always a bonus (not priced-in). And today's trading update was pretty positive: "Company continued to generate good sales growth for the 12 months to 31 December 2019, up 9 % to $ 59 .4 m (2018: $54.6m) and expects to deliver a return to positive adjusted EBITDA." "The trial order for a large UK retail client will be completed and delivered during March 2020 with a $0.85m suit order for 2020 already secured from this customer." In the meantime, Israeli millionaire Ben Ezry continues to build on his significant stake.
Shandong will settle for bucks. Note the small print. All other conditions for investment had been satisfied. Easy multibags from these levels.