Why Trio-Tech (TRT) Rally Is Very Early
If you look at this long-term chart of Trio-Tech International (TRT), its current trailing twelve-month average monthly volume is only 914,380 shares.
When Trio-Tech International (TRT) rallied to a high of $6.87 per share in December 2021, its trailing twelve-month average monthly volume reached 10.13 million shares or 11.08x higher than today.
When Trio-Tech International (TRT) rallied to a high of $12.38 per share in July 2007, its trailing twelve-month average monthly volume reached 4.05 million shares or 4.43x higher than today.
When Trio-Tech International (TRT) begins to average 4–10 million shares per month in volume later this year, it will easily reach $25–$50 per share.
Out of 633 publicly traded companies on major U.S. exchanges in the Information Technology sector, TRT is 1 of only 11 companies with:
1) revenue growth of 30%+ in MRQ
2) positive free cash flow on a TTM basis
3) less than 25% dilution (over the last 10 years)
The other 10 companies trade at an average enterprise value of 8.30x revenue.
TRT has the lowest market cap of these 11 companies at $50.92 million. The second lowest market cap company is worth $4.21 billion.
TRT has the second highest revenue growth of these 11 companies at 81.56% year-over-year last quarter.
TRT has the lowest enterprise value/revenue ratio of these 11 companies at 0.70x revenue.
The second lowest company is Sanmina Corporation (SANM) at 0.80x revenue, but:
• TRT has gross margins that are 2.101x higher
• TRT is growing 1.383x faster
Applying these differences:
0.80x → 1.681x → 2.325x revenue
Even in an absolute worst-case scenario, TRT will soon trade for $14.56 per share.
And remember, TRT’s $5.3 million AI GPU contract (AMD / OpenAI) and $2.5 million automotive semiconductor contract (Infineon / Rivian R2) are expected to significantly increase gross margins.
We believe TRT can become a $25–$50 per share stock within months.
Past performance is not indicative of future results. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This communication is for informational and educational purposes only.