Another independent report on EUOEurocontrol Technics TSX V: Opinion - buy
I last updated EUO on February 20th with a buy at $0.17 as I believed their stock repurchase plan was a good idea. The stock did run up to $0.22 and correct some but there has been a lot of news recently and what really caught my attention was the stock chart. The stock is in a steady uptrend with decreasing volume, a bit strange and when I checked 'On Balance Volume' you can see the stock has been under steady buying accumulation. There is a whole new shareholder group taking control. On May 4th we learned that some of this buying has been SICPA, disclosing that they purchased 100,000 common shares, increasing its holdings in Eurocontrol to 9,276,500 common shares, representing ownership of 10.09 per cent. Bruce Rowlands, chief executive officer, stated: "We welcome SICPA as a significant shareholder. Given the partnership relationship through our subsidiary Xenemetrix that has an exclusive supply agreement with SICPA/GFI supporting their Petromark technology, we view this investment in Eurocontrol as confidence on our business model and outlook." I would not be surprise if SICPA at some point, just buys out EUO. Early May, EUO announced 2015 year-end results reflecting a 33% increase in fiscal year revenue, including discontinued operations, to $7,909,442, compared with $5,956,733 for the year ended Dec. 31, 2014. They also recently announced that Eurocontrol's wholly owned subsidiary, XwinSys Technology Development Ltd., has been granted a patent from the United States Patent and Trademark Office for its patent application No. 14/234,169 made in 2014 covering a method and a system for inspection of voids in a bump. This is in regard to quality control on electronic wafer production. Rowlands comments explain it: Bruce Rowlands, CEO stated: "The acceptance of this patent application by the United States Patent and Trademark Office is a significant milestone for our subsidiary XwinSys. This invention in the field of wafer inspection is new for its ability to detect the existence of voids in a bump and to calculate voids volume along with other critical dimensions relative to bump inspection, such as bump height, pillar height and solder composition ensuring overall product quality." The most recent news is signing of an MOU with Digiflex of Israel DigiFlex Ltd., is a private Israeli company that holds patents in inks and printing, the MOU is to form a joint venture that will focus on developing technology to address security inks to provide a security solution to governments and product brands protection to industry. Xenemetrix and DigiFlex are investigating a new approach to security printing that will involve a threestage coding system with simple implementation and ease of operation. Utilizing DigiFlex's unique ink solution that can be printed with high resolution on any surface (including glass, metals and plastics) and a hand-held reader based on Xenemetrix's ED-XRF technology, the new technology will be able to identify the composition of elements in the ink and will also have the ability to identify a visual image printed with DigiFlex coded ink. The signing of this MOU coincides with a business mission to Israel and the West Bank that Eurocontrol was asked to participate in by the Government of Ontario. The mission continues the decade long cooperation between Ontario and Israel that is focused on establishing Ontario as a top innovation and knowledge economy partner with Israel. The business delegation accompanying Premier Wynne includes a number of Ontario companies that are pursuing trade opportunities and research and development projects with Israel to create cutting edge technologies. "By combining their technical expertise, DigiFlex and Eurocontrol will not only improve security for governments and industry, they will help curb the illicit trade of goods all over the world," said Kathleen Wynne, Premier of Ontario. "This partnership is one of the many cooperative agreements being signed during my business mission to the Middle East, where I am promoting the exchange of knowledge and information and seeking new opportunities for collaboration that will benefit both regions." Bruce Rowlands, Chairman and CEO stated, "We were thrilled to be invited to participate in this trade mission. Eurocontrol has had significant success in working with Israeli companies to commercialize and assist with global expansion of leading edge Israeli technologies. The MOU with DigiFlex is another such initiative that will initially focus on identifying niche markets where Xenemetrix's existing ED-XRF chemical and elements analysis can be broadened through marrying it with DigiFlex inks and processes to hopefully bring new authentication products to the market that will help address the wide spread trade in illicit goods." Hezy Rotman, DigiFlex's CEO stated, "We are excited for the opportunity to join forces with Eurocontrol and Xenemetrix to bring to market a breakthrough product in the "chemical authentication" industry segment based on the proven technologies of DigiFlex and Xenemetrix." This is a good fit for Eurocontrol as it will expand their security marking and identification beyond the Oil market that SICPA is now handling for them. When it comes to security, Israel next to the U.S. and maybe even better than the U.S. is a world leader. So I am sure a great partner for EUO.
https://eurocontrol.ca/images/reports_and_filings/independent_reports/2016/Struthers_Report_May17_16.pdf