Dear Raptor,Dear Raptor,
I began to post here since EUO was trading at $0.18 or so. I was very disappointed with the EUROPE Decision about the Solvent yellow 124. I expected before December 31th 2016, that the DECISION would have gone to SICPA for the mark oil (petromark by GFI). But no way. That decision should have been impacted in Xenemetrix revenues. Now that we all know the truth here, there’s no way to expect anything from SICPA revenues with those 5% royalty that Bruce always reminds in every annual letter. So, since then, the share price has been going down. Today’s YTD is -25% and I expect more to come. Keep in mind that this is my personal analysis, done it by my own due diligence. So, how can someone expect greater prices if this 5% royalty is not here this year?
Raptor, you have to check Xenemetrix revenues to write a serious post. Their average is around $300,000 per quarter. Cost of sales is around 40%, so here we have around $180,000 net revenues.
Now, you can see the average of Administration salaries ($200,000 per quarter), and Management Expenses ($200,000 per quarter). EUO have increased these two items although they don’t have GFI (remember, EUO sold GFI to SICPA for about $15MM. A Company that had around $4,5 million revenues per year). So how is it possible? Check MD&A on SEDAR and you will see that (from 2013 for example).
Now, see the price: $0.14 this Monday, but you have to wait until April, to read the annual and last quarter report to see that EUO will have less cash on hands because they can afford it. Then you can value this Company. A Company that is not growing its principal product “Detectors and Others” from Xenemetrix. In 2013 they only had $1,887,269 revenues. In 2014 decreased more than 20% to $1,508,991. In 2015 decreased another 15% to $1,271,111. And I expect another decrease or flat in 2016, because they have been investing a lot of Research and Development (over $3 million) to stop the falling. So now what? Well, now we have Isranalytica 17, another innovation to be awarded, but without a planning of revenues.
| 1Q - 2013 | 257.512 CAD |
| 2Q - 2013 | 498.852 CAD |
| 3Q - 2013 | 457.668 CAD |
| 4Q - 2013 | 673.237 CAD |
| 1Q - 2014 | 392.972 CAD |
| 2Q - 2014 | 379.892 CAD |
| 3Q - 2014 | 419.871 CAD |
| 4Q - 2014 | 316.256 CAD |
| 1Q - 2015 | 326.597 CAD |
| 2Q - 2015 | 266.710 CAD |
| 3Q - 2015 | 275.492 CAD |
| 4Q - 2015 | 402.312 CAD |
| 1Q - 2016 | 302.673 CAD |
| 2Q - 2016 | 394.180 CAD |
| 3Q - 2016 | 250.631 CAD |
| 4Q - 2016 | |
Best regards
B4ever