GREY:ATIVF - Post by User
Post by
butterfly5on Mar 18, 2009 10:10am
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Post# 15851817
Recommendation: BUY
Recommendation: BUYIn Today's Issue
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ACTIVE CONTROL TECHNOLOGY INC.
Research Capital - Research Alerts
Technology
ACTIVE CONTROL TECHNOLOGY INC.- (ACT - CAD$0.18)
Target Price: CAD$0.40 Recommendation: BUY
ALERT: FIRST MSHA-APPROVED NETWORK TO BE INSTALLED
This morning, Active Control announced it will install an MSHA-approved 50 node network with one of its existing customers in West Virginia. We speculate it maybe Patriot Mining (formerly Magnum). Installations are expected to commence in April. Although not disclosed, we estimate the contract to be worth $250k and expect it to be booked by Q4/F09 (July quarter-end). In addition, this underground (room+pillar) mine is currently active on 2 faces, meaning ACT will deliver/install on average 2 nodes/month at a cost of $20k/month. The contract also carries on-going recurring maintenance fees (~10% of contract value). The announcement is in line with our expectations (no changes to estimates). We reiterate our BUY recommendation with $0.40 target based on 4x C2010 sales/share.
By Nick Agostino - 2009/03/18