Post by
Misbrandt on Feb 21, 2015 4:18am
On the other hand
Major cash burn, dilution almost doubling shares (if it even gets close to closing), little promotion. I guess I can see why this stock is hurting.
We might some decent revenue soon though, the absolute lowest a microbial test will cost is $20 and it could very well be much more than that for O&G industry, but if we get 100 000 annual tests ordered through Ely that is $2 million minimum right there. Food safety tests would also likely end up in the millions of dollars per year. Trillium does $1 million annual revenue (expected $3.5 in 2015, $20 in 2017). In the corporate presentation they show other companies in a similar field trading at 5-20X revenue, so if we manage to pull off $5 million, we might actually see a pretty big multiple in SP from where we are now. As always, this is a straight gamble at this point, if they manage to walk the talk there is huge money to be made, if they can't raise capital, keep diluting, don't make any sales and burn their cash on R&D that doesn't turn into sales, well, guess we're screwed, that's why we are here on the Venture though I suppose... Buyer beware, do your DD and good luck to all brave enough to toss the dice.