RE:Too early to bring out pe ratios to estimate stockprice Peter has mentioned approximately 5% of contract will be paid yearly for maintenance and will be part of the deals. I can't remember the duration but 20-25 years (life of the torch) rings a bell. This could be substantial and will accumulate with every contract going forward to provide garunteed annual revenue. This little tidbit often goes unnoticed or is forgotten from my experience as most focus on the overall total of the contracts.
Tcheck wrote: Contractc are one time events and don t say anything about future earnings after the contracts.
after the contracts the company will have to keep on generating solid or equivalent earnings if you want to aplply p/e ratios .it is based on future earnings .
i think contracts will be the beginning of the journey
But nothing demonstrates that the contracts can be repeated continuously .
in itself it is enough to be happy to belong to this company ..
after that new opportunities will show up .tunnel boring ,silicon mining solutions etc ...
and the cash will enable ,facilitate new projects .
if the increasesd income is well spent the company will keep growing .
the possibilities are endless with this technology but i wouldn t use P/E ratios to calculte the
price of the stock for now.
if the fundamentals are right
and the management is smart
that will convince the investor to buy the stock.good management (innovative ideas)will determine if the company will keep on growing .once the iron pellet industry is conquered that s it ..no more sales :) only maintenance .we want sell new itorches 2,3,4,....xxxxand convince the iron industry to buy new torches each year :)
my humble unschooled opinion