RE:🚩The margins are way too low to make serious profits.🚩Hey Dollars for Pennies,
I agree 22% margins are low. Although, like you point out, they were even lower before. BLM management understands that too. In fact, currently they are only looking for quality clients/partners that can appreciate their great service and products and are willing to pay for it. Scott and Dan mentioned on the last conference call that they have been taking a very hard look at margins, with their intent on raising them. They also feel like you they are too low and want to bring them up in line with their competitors.
Some other points I should mention include that fact that their current backlog should lead to over $50 million in sales in the 2024 fiscal year ... at the higher margins. That is 25% more in revenue at a higher margin rate. So, if you factor that out, it should lead to earnings easily in the range of two cents per quarter. That is eight cents annual earnings (if not more) with a super low PE of just 5.25 based upon a $0.42 share price. When in reality, it should support a price of $0.80++ based upon a 10.0 PE, which is still low for a growth oriented profitable company expanding worldwide with new patented products.
They are going to do all this using their own self-funding, which is another reason for increased margins from where they are now. And yes, they have their current highest working capital available in order to fund and manage these higher sales. Another reason I believe they are going to achieve this higher level of sales and income is because they have set a great pathway. They recently held an inner company conference to plan, educate and pump everyone up. Plus, they have and are still hiring more people to achieve and handle this (employee count has gone from 160 to 180+ and still growing). They are really increasing their sales and marketing efforts to increase consulting and product revenues. And they have made longer term plans to go over the $60 million mark, as early as 2025.
Further, there are done with being the forgotten little company that nobody cares about or has an interest in. Blumetric Environmental is going to be heard by many more than in the past. I suggest you jump on this bandwagon, if you are not already and enjoy the ride up over the next two years. I see BLM stock building a base at $0.45 and then steadily rising through the course of the 2024 year, perhaps hitting a new all time high latter in the year or in early 2025.
Again, all this information gathered and determined by myself to the best of my knowledge. This is my own opinion. Good luck to all current and future BLM shareholders.
Angles