TSXV:WEE.H - Post by User
Post by
BenVest99on Jul 28, 2010 7:06pm
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Post# 17305045
100% YoY earnings increase
100% YoY earnings increaseFrom the news release:
"Operational revenues for the nine months ended May 31, 2010 more than doubled that of the comparative period in 2009. Third quarter 2010 operating revenues were $1,695,734, an increase of $884,630 over revenues recognized in the comparative period of $811,104".
This is the most important part of this news release. If they can keep that pace going forward, the fair value of the stock will be reached when WEE will be trading at 100 times earning when they'll be profitable according to the PEG valuation method.
Other than that, you can notice a very different tone in this NR compare to their usual very confident ones. I can see more transparency as well as we have learned that they are overcoming some challenges related to the need of having tools that can operate in fields where there is no electrical power. I don't remember having seen a news release where they were not only blaming the pace of installation on the oil industry slow pace of adoption. This new transparency might be the new required way of doing things now that some big investors have put more serious money into this company. This can only be good for share holders IMO.
"The Corporation continues to identify operating parameters of a mechanical flow driven tool used in injection wells where no electrical power is available. These types of injectors represent the larger portion of the global market and the Corporation developed new tools based on client feedback and demand. In identifying the operating parameters of the mechanical flow driven tool the Corporation has incurred expenses related to tool re-installation as well as expenses related to tool design modifications to consistently generate the results expected for Powerwave-driven water and CO2 floods."
That is the part that is new to me and I don't know what are all the implications related to mechanical flow driven tool. Does Powerwave require electrical power to run and they are now building a new tool that doesn't require electrical power? Or is it the water injector that has a mechanical flow and Powerwave must be adapted to work with this kind of injector?
OXEN: Would be nice to have your thoughts on this!
I haven't seen management discussion and analysis as well as the earnings documents on SEDAR at this time.