HY20 Results: Very good. Stock is going to go up.

XRF reported today. Topline growth of 20% with margin expansion across all divisions as the company passes the inflection of the capex cycle over prior years. With capex intensity down, profitability up and selective M&A mindset, cash is pouring in and the divie was lifted materially as well. The stock is cheap still and offers better growth than peers. I will update my valuation once I get a chance to recalibrate my model but I suspect my target price would lift to high $0.30 range

The business has gone through a multiyear investment phase to create a global network to meet customer needs/demands. Fruit of that investment is slowly coming through as management focus on growing sales to validate. Early signs most prominent through the German office as its just made breakeven. Stock is being depressed by committed seller who doesn't care about fundamentals. (position made up 0.01% of their fund). Trades quite cheap at ~5-6x EV/EBITDA probably worth up to double that. So XRF is at an earnings inflection at a low multiple that can expand so double leverage upside. Reminds me a lot of the LBL set up (i.e. where LBL was at the urn of FY19).