We need a catalyst WolfThe catalyst for substantial price appreciation is when the first machine is sent to a multi-national end user, and that catalyst is now being set. As I see it, the market will identify that if the technology is working for one multi-national, then logic would tell us that it will work for all. After that, figuring a reasonable forward looking growth based PE ratio will take the stock to new highs ... serious new highs. (what is the ratio of a company making $25 million in recurring annual revenue and looks to grow at twice that per year?) In-house testing on the machine that will ultimately be sent to Danisco has begun. In this most recent release, EnWave speaks more clearly than ever before about the steps involved in going to a licence and royalty agreement. The company has a fantastic track record of projecting and subsequently accomplishing goals and this project has been a main focus of the company for a looong time. (I can’t really believe they would release this news if the initial testing of the machine had not been successful!)
Also of interest on a trading note is that several US brokerage firms are showing up on the buy side lately. It would certainly make sense to me that ENW be made easier to purchase by US funds and investors. When and how the company accomplishes that is a question that remains to be answered, but one I suspect will be answered in a reasonable time frame.
Mike!