OTCPK:MGMXD - Post by User
Comment by
materialsgirlon May 29, 2017 12:45pm
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Post# 26296270
RE:RE:RE:RE:These are big, cumbersome projects that take years gather
RE:RE:RE:RE:These are big, cumbersome projects that take years gather Electrical generation is one thing and it is an important thing.
We must then take into account that some generation produces twice as much revenue as other places. The attributable portion of generation is the important number. They get very little by way of management fees for the remainder.
The real crucial numbers, of course, are the dollar figures. Many years ago, they talked about getting close to
$100m in revenue. We are still a way off yet but we are sure to be there in 2018 if not 2017.
$100m in revenue is a key benchmark for any new business. It sets the stage for doing bigger deals and perhaps reaching $250m in revenue 5 or 6 years later (2025 or sooner?). Very good things then begin to happen. Borrowing money may get to be cheaper and easier. The savings in interest expense go directly to equity holders. Corporate overhead is spread out over a bigger revenue base and therefore falls as a percentage of Sales. Applause, applause.
One worrisome habit of AXY is that they do joint ventures rather than keeping 100% of a facility for themselves. This practice spreads the risk for sure but it takes lots more time to reach $250m in revenue. AXY has enough heft and enough engineering expertise to go it alone rather than owning 25% or 40% or 51% of electricity plants.
They need to hire a 2-year-old who will shout "No no. I will do it myself"