TSXV:WEE.H - Post by User
Comment by
BenVest99on Jul 28, 2010 9:08pm
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Post# 17305314
RE: RE: 100% YoY earnings increase
RE: RE: 100% YoY earnings increaseThanks for your insights SiJockey.
Another positive from this report is that they now give a clearer breakdown of their revenues. Powerwaves revenues were
$ 653,155 for the quarter ($217,718 / month ) with 84 tools installed for clients. This gives an average of $2,592 / month on average for each Powerwave tool. Now, total revenues also include stimulation revenues and some installation revenues if I'm not mistaken. We also don't know how many of those 84 tools are provided for free. So we can't get a real understanding of how much money their getting at this time when a customer actually pays for the tool.
I wonder if the delay with the Pemex deal is also related to the mechanical injection process or if it is purely related to Pemex approval process? I'm not sure if the company would give me the full picture if I ask.
Personally, I prefer to see that they have some technical work to do to fine tune the tools for a particular environment than to have them wait for the oil industry to accept the technology. At least now we know that they can do something to make things move forward.
As for requesting more transparency from the company, I think that the bulk of the job has been done by the big investors ( and they probably got that information before buying the private placement at $2.10). I remember that about a month before the PP, a fund manager was on BNN and he publicly said that Wavefront had not been transparent with respect with the installations and revenues they get from Powerwave. He also said that he was hoping to have more information when he and some investors would meet with the company in the coming days at that time. I guess that Sprott and Haywood had the same requirements before they would put more money into this.
Now, what I would also like to have more information on is their strategy to develop the international market. We know that this is their mid term goal, but what are they actually doing to reach that goal is unknown at this time.
GLTA