RE:RE:Reading on a former stock scamfruitofspirit: Maybe you should worry less about posters crossing the line and worry more about the BOD / management / insiders having crossed lines for a long time.
As they say, the proof is in the pudding. Will be fun to update these Nov 30, 2017 numbers once the 2017 annual report comes out in late April or early May.
12 years of financial statements and MD&A’s paint a rather fascinating picture.
VALUATION:
2005 (Dec) ATH (SP $1.14, 23 Mil O/S) = $26,000,000
Current ($0.07, 90.75 Mil O/S) = $6,352,500
Loss over 12 years: $19,647,500 or 75.5%
OPERATING LOSS:
2005 to 2015: ($15,500, 000) pre GFI sale
2005 to 2017: ($ 3,900,000) post GFI sale
REVENUE:
$38,588,000
WAGES (incl. consulting / mgmt. fees & stock based compensation)
$20,519,000 or 53.1% of revenue
SALES & MARKETING (largely salaries / consulting fees)
$5,309,000 or 13.8% of revenue
R&D:
$8,437,000 or 22% of revenue
SICPA / GFI deal in proper perspective:
2005 GFI purchase price: $8,787,000
Operating losses prior to sale: $15,563,000
Total (true) GFI cost: $24,350,000
Sale Price net of closing adjustments incl royalty guarantee: $23,200,000
Net Loss: $1,150,000
Noteworthy: Insiders collected some $350,000 in bonuses for putting this deal together and EUO’s CEO scored a SICPA consulting contract in the process.
Feel free to reduce this loss by whatever ”blue sky” you wish to attribute to future royalty income above the minimum but keep in mind that SICPA didn’t become EUO’s largest shareholder and demand a seat on the board purely for the fun of it. Any “sniff” of a large contract and EUO will be taken over at the lowest possible price and there is no even loosely connected shareholder group left large enough to stop this.
These 12 years cost regular retail investors nearly $20 Mil in valuation losses while insiders (management, BOD, staff) received some $31 Mil in wages, consulting fees etc. and that does NOT include any gains from stock options.
2 years since the GFI sale and nothing to show for but over $11,000,000 in operating losses (includes Q4 estimate)
“Value destruction and insider greed at its finest”
As always, if anyone sees it differently, I’m all ears.
PS: Potential addition of insult to injury … IF EUO decides to abandon XwinSys and the indications are there, a lot of these operating (R&D) losses will turn into total / unrecoverable write-offs. This would leave EUO with the Xenemetrix and Croptimal money pits and a SICPA finally securing a meaningful contract “Hail Mary”. If this doesn’t happen, EUO will run out of money just in time for Bruce and Doron hitting a reasonable retirement age.
Read more at https://www.stockhouse.com/companies/bullboard/v.euo/eurocontrol-technics-group-inc?postid=27251504#MLz88w15r4MKexbR.99