OTCPK:EUCTF - Post by User
Post by
green24on Aug 16, 2016 3:24pm
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Post# 25147161
Kickstart my stock
Kickstart my stockWhat is XwinSys worth? What is it's potential? Can anyone make an economic case for it's continued existance? When I try to describe EUO to other people, the first three things that come to mind are the cash pile, the SICPA/GFI royalty, and the potential of the royalty increasing if SICPA ever lands a major fuel market contract.
I can more or less tell people that there are around 92 or 93 million shares and at 15.5 cents, that gives the company a $14.4 million dollar market cap. I can point to the last quarter's financials and see that they were showing about $7.5 million in marketable securities and $6.8 million in cash and cash equivalents - so about $14.3 million.
Basically that values the royalty at zero . The $9 million coming our way over the term of the SICPA royalty is being given a net present value of about $100,000. Obviously this can't be true, so that leads me to wonder what XwinSys is actually worth? Is the market acting crazy or does XwinSys (and the other parts of EUO) actually have a negative value?
Is XwinSys going to make us any money? Are investors expecting it to totally drain the royalty stream for the next 5 years without making us a dime of profit?
If we were to spin out XwinSys and all of the expenses associated with it, leaving EUO as a shell of a company holding $14M in cash and a future $9M royalty stream, then EUO would basically be a 10X P/E company with nearly zero for expenses and guaranteed earnings for 5+ years to come. Plus they would also have all of that GFI/SICPA potential as well. This cash+royalty shell could theoretically pay us a risk free 10% dividend for the next 6 to 16 years and give us a one time cash payout when the dividend runs out.
The spun out XwinSys part of the company could take all of management's salaries with them (in theory at least). So would the XwinSys (and other parts of EUO, Xenemetrix, the IP, etc,) have any real value?
If so, what do you think it would be?
It just seems nuts that we are basically trading at our cash and marketable securities value right now, and getting no recognition for the royalty or other parts of the company.
The CEO is buying almost daily. SICPA, which owns over 12% of the company, recently bought nearly half a million shares at .19. The share buyback keeps taking the share count lower. I myself am buying nearly every day as it drifts lower and lower. This company seems like a stone cold buy to me. Am I wrong? Am I missing something?
Please share your thoughts people.