RE:RE:Management ExpensesZen, below my comments:
1. You seem to have forgotten the $1.5 million per year minimum royalty they will receive from SICPA, with significant potential upside for new contracts, which SICPA is working on agressively.
I did not forget this point. I mentioned in other posts that royalty payments are not operating revenues. They are assets already included in the balance sheet and market gives ZERO value to it seems that EUO is bleeding cash on hands. Check next quarter report to see it. It will be less than 3q-2016, for sure. The most important thing here, is how revenues can go up with the core business. And that I what I pointed. So with this $1.5 million per year royalty they can increase their management expenses for a while. 2. If you happened to miss the presentation at The Atlantic Council Global Energy Forum less than one month ago, copy this link and paste it in your browser....they're talking about a lot more than just the EU, fuel smuggling is a global problem and we are partnered with a leading provider of tax stamps and government revenue assurance programs.
https://www.atlanticcouncil.org/component/content/article?id=34016:special-report-launch-illicit-trade-of-hydrocarbons I agree however that we don't need such top heavy management just to let SICPA do all the marketing, while corporate will collect a royalty and just need to sustain Xenemetrix in a competitive position in this niche. .......
Zen, this is an amazing presentation for SICPA, but not for EUO. EUO just sold GFI to SICPA, and now Petromark is not the case here. All of this is very nice, but SICPA will not begin to sale if EU decision don’t pronounce about it. And don’t forget this: EU decision has postponed until 2021-2022, didnt you know? 3. You also seam to have completely written of XwinSys, less than six months after they made their product commercially available. It's hard to gain any insight here, so sure, maybe you're right to do that.... You also don't mention Croptimal, those pilot projects are expected to begin bringing in some revenue this year, although it will probably only be the sale of a few field analysis tools for the time being. I see better prospects for the long-term potential, Netafim gets exclusive rights for irrigation companies, but Eurocontrol retains rights for other areas of precision agriculture......I think management's ability to sniff out this niche will prove to be worth something.
Yes, if you read all their filling in SEDAR, you can see that revenues will not come this year with Xwinsys products. Bruce only mentioned something about Croptimal, that it would begin to sell this year. He did not say anything more so I expect it would be some revenues in the last quarter of 2017. I mentioned in older posts that I assumed $150,000 revenues for all this year, because again, I see it like a transition year. 4. Your glass is half empty and the stock price says the market agrees with you, but for me, I don't see any place I'd rather allocate my capital now than a company trading near cash, with two alliances with industry leaders, and a platform to build further applications on.
Be carefully with your glass. We will see in April (next report) if EUO was trading now near cash. Investors look for revenues. That is the problem. They aren’t transparent when they refuse to talk about GUIDANCE. Read more at
https://www.stockhouse.com/companies/bullboard?symbol=v.euo&postid=25812624#2sZqrB8R1Kyjc6DR.99