REF - Reverse Corp

[knightofsx33]

hi guys this is a telephone related company, right now it is selling at next to nothing, its previous earnings has being consistent and also it is making a profit right now. It is selling at only 16 cents but the company made 12cents last year so I think its a bargain. It is the famous 1800 reverse company and I do not see how the company will bankcrupt or has its earnings fully slashed again since the economy is recovering. I think of this as a speculative buy. just some thoughts.

 

[McCoy Pauley]

A mate of mine owns shares in REF and he's bleeding. Lucky he has some LGL to make up for it.

Personally, I see this as a company that will be in reverse (haw haw) for some time. A prepaid mobile phone costs next to nothing and statistics show that the average Australian has more than 1 mobile! Given the prevalence of mobile phone penetration in Australia, I can't see how a company with a business model like REF has a sustainable profit model.

I haven't done any research on this company so I may be completely off-beam, but that's my

 

[Laohu]

This has come up on my radar a few times... it didn't take too long for me to run away scared tho. No expert, but looks like it's foray o/s ain't going to be a good one, especially as the Celtic Tiger has gone into hiding for now; I think they were hoping to grow on the back of that.

Definitely speculative IMO

 

[wozzza]

this to me is a perfect case for a common sense decision. this companies whole premise has no future, everyone has mobile phones. maybe it looks cheap but its doomed in my relatively uninformed and judgemental opinion.

 

[knightofsx33]

lol but doesnt your mobile run out of credit? when it does u can just dial 1800 reverse...... I think people dont realise that the 1800 reverse works for mobile phones too, if is a small company so it doesnt need too much revenue, I mean it is already very rare for people to not have and change on them so this is really a small insect in the big telephone industry. I do see it making a considerable amount of profit and right now it is just too cheap.

 

[condog]

REF was a brilliant company when they only operated in Australia, there expansion overseas has been imo a terrible failure. They have spent vast amounts of money with little success. The current sp seems to reflect investor concerns that they have not learnt and adjusted thier goals accordingly.

They are now faced with the unfortunate problem of possibly axing OS investments if they dont quickly perform and having no new strategies for growth or repair of ROE. All opinion so DYOR.

 

[knightofsx33]

All investments take time to mature and turn profitable, they have expanded into the UK which is very similar to Australia in terms of the people. So there is definitly market there so I think it will definitly make a nice profit over time.

 

[Sirloin Steak]

Looking at the balance sheet its a highly geared company,
I put a little bit into this one knowing that it was speculative,
What caught my attention was the massive return on equity these guys have had over the years,

I dont know a lot about the telco industry,
I do know that this is a household name,

Not usually big on including intangible brand names in my valuations but its undervalued on the balance sheet,
When this business was working well it was turning over amazing dollars for its size,

People do not even know that they can dial 1800reverse from their mobiles,
I think the biggest reason for the decline in revenue of these guys is a lack of focus on domestic marketing,

When the business was making big money marketing was very aggresive,
I dont think that REFs troubles are a product of an economic slowdown,
Really shouldnt this business be countercyclical?

Anyone share some thoughts on this post?

Cheers

 

[Sirloin Steak]

Ive heard them participating in a promotion on the radio and they seem to be looking to the coin mate business for the future. I'm holding on Ive got faith in thee guys to find another high profit technology opportunity. If not Ill ride them all the way Im not prepared to take the loss.

 

[prawn_86]

If not Ill ride them all the way Im not prepared to take the loss.

That sentence doesnt make sense to me...

So if they dont find another technology, or if their shares dont go up you will continue to hold?? What if they never recover above your buy price?

 

[Sirloin Steak]

That sentence doesnt make sense to me...

So if they dont find another technology, or if their shares dont go up you will continue to hold?? What if they never recover above your buy price?

Sorry about the late reply havent been on ASF for a while,

Definatly didnt make sense...should have read "Im prepared to take the loss",
Thanks for picking that up,

Ive since sold out because I needed the cash for another opportunity,
Not as optimistic on this stock as I was,
Fortnately I didnt go too hard into it,

I think there is still plenty of potential for them but they do seem to be allowing themselves to fade into the background.

Still look profitable but hard to know when earnings will stabilise and stop falling off a cliff and whether they can sustain revenue over the medium term.

 

[piggybank]

Daily P&F

 

[McLovin]

Daily P&F

View attachment 56188

That's pretty interesting, because unless they've found a new business, these guys have been in long, long run decline. Every one has mobile phones now.

ETA: I see in mid-December they issued profit guidance to the upside.

 

[piggybank]

That's pretty interesting, because unless they've found a new business, these guys have been in long, long run decline. Every one has mobile phones now. ETA - I see in mid-December they issued profit guidance to the upside.

Hi McLovin,

Here is the most recent announcement which was released to the market on the 27/02/2014 - Half Yearly Report & Accounts:- http://stocknessmonster.com/news-item?S=REF&E=ASX&N=785265

What is your take on the result? Would you be prepared to jump in now, or not?

​

 

[McLovin]

Hi McLovin,

Here is the most recent announcement which was released to the market on the 27/02/2014 - Half Yearly Report & Accounts:- http://stocknessmonster.com/news-item?S=REF&E=ASX&N=785265

What is your take on the result? Would you be prepared to jump in now, or not?

View attachment 57086​

Hi Piggy

I haven't really had a look at this. It's far too small for me to ever consider. However, $4m in cash, no debt, generating $1.1m in OCF last year and a market cap of $9m. Doesn't seem all that bad. Again, this is a very uninformed opinion I'm giving you here.