Range International Ltd [ASX:RAN] manufactures pallets made from 100% recycled plastic. At time of writing, their shares are up by 79.49%, today trading for 7 cents.
What caused huge jump for Range International?
Today, Range announced its quarterly cash flow report for 31 March. The net operating cash flow loss halved from $3.6 million in the December quarter to around $1.6 million. Product manufacturing and development, advertising and staff were also reduced significantly. Meanwhile, purchases from customers rose — representing the best quarter to date.
Future looking bright for Range International
The market was encouraged by the result, bidding the share price higher. Following the business restructure, where Evasio Barbero stepped down as Chief Financial Officer on 5 March, Ms Kim Bradley-Ware stepped into the position on 1 April. The company is approaching its business plan with a new strategy, aimed at cutting costs and focusing on generating sales.
Range’s undiluted enterprise valuation (market cap less cash) stands around $8 million at 7 cents per share. If the company keeps boosting sales and cutting costs, the business could experience a dramatic turnaround. Range is focusing on recruiting new sales staff in Indonesia over the coming months.
The bottom line: keep watching the numbers in the upcoming quarterlies. If the company can turn free cash flow positive and grow its global footprint (likely to be a number of quarters away in my opinion), Range’s share price could skyrocket.
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