Wavefront Technology Solutions Inc V.WEE.H

100% OR 200% GROWTH POSSIBLE

[koldrake1859]

There are no rectrictions to produce and sell tools at rates of 5000, 10,000 or 50,000 per year. It all depends on setting up the right production line.

Distribution, installation, spare parts and support are also not a problem. It has been done over and over again.
The question is how to maximise profits. The unfortunate thing is that unlike say a drill bit that has to be replaced constantly, or the ink cartridge in a printer, the tools sustain very little wear and tear and do not have any consummables that WEE can rely on to generate an income stream from. 

So the leasing/licensing approach allows you to retain control and is easy to finance when the lessees are first class. It will be slower in the beginning but it can still grow fast if it is structured properly. One possibility to speed up the process is to take a leaf from the insurance industry in order to incentivize a distribution network by offering a slice of the revenue stream. This would allow you to set up distributors nationwide and keep them interested in the follow-up. An added benefit should  be minimum dilution to existing shareholders by going to the leasing approach as financing should be easily available on the strength of the lessee's financial position.

Of course this doesn't mean that today's valuation shouldn't be higher on the strength of these prospects but we do need to see a trend developing before other more sceptical investors decide to dive in. After all if Capstone Turbine CPST can reach a valuation of $600 Million with hardly any sales (but with a growing balcklog) , surely WEE can do orders of magnitude better than that.