RE:Hyper Growth Potential
Playa-what Eurocontrol does not lack is financial punch from an operational basis and from a guidance perspective. All earnings reported are trailing earnings meaning past performance so P/E rations when attached are also trailing.
What the story lacks is pizzazz and more then one talking head making the investment case.
I applaud Rowlands for being active in that regard-they need more than one talking head holding EUO as a 5% position in their managed fund IMO-talking up the tale of the tape...and till it reaches a certain $ valuation that will remain elusive cuz it will not be covered by certain mainstream houses that would otherwise be issuing a strong buy report on Eurocontrol and adding exposure to the stock to its own managed accounts but due to their own prospectus cannot buy into this story till certain criteria are met.
I look forward to this thing eventually getting off the Venture and onto the TSE for starters.
Its also in what is considered a necessary...ultra necessary but "non sexy" line of business currently by and large a petro marking and tracking enterprise.
As it enters its vertical markets...with more verification apps? this will change...especially into the tech space involving semi-condutors.
In the interim?
On leading P/E ratio's based on company Guidance?
Valuations would jump off the chart and if you pay today for a companys ability to throw off free cash flow in the future?
You basically investing into the company should expectations and guidance for current oprational year into calendar 2016...?
For next to nothing.
SS
Playa2012 wrote: The Midas Report podcast from Thursday was revealing. If they can execute on just some of that guidance then the market capitalization will get repriced into the hyper growth category. https://www.midasletter.com/2015/07/eurocontrol-technics-group-ceo-bruce-rowlands-podcast-interview/ 2015 Financial and Operating Highlights - Achieved first quarter revenue of $1,931,299, an increase of 36% from 2014 - Recognized record EBITDA of $707,615 compared to $232,243 in 2014 - Strong cash position of $2,613,476 compared to $2,268,199 for the first quarter 2014 - Recognized operating net income of $546,267 compared to $58,929 for the first quarter 2014, an 827% increase - Achieved an overall gross margin of 61%, compared to 48% in 2014 - Achieved working capital of $2,388,184 compared to 2014 year end working capital of $1,640,429 - Continued cost efficiencies in 2015