RE: RE: RE: RE: RE: RE: RE: Death Cross? Why buy PI know you didn't ask me Marc, but from my perspective data streaming will not be mandated probably for several years, and IF & when it is mandtated its not going to be much of a revenue generator. I see it as more of a loss leader - one more reason to get the 228 installed so that the other cost saving features can be realized and start generating revenue for AMA. If it is mandated by SESAR great!!
The financing is now complete save for dotting the T's & C's, and we're facing a major dilution which puts significant curbs on upside potential for the stock.
We're now back to the same questions everyone is asking - contracts and subsequent installations which drive revenue & cash flow. This has to happen before AMA's new horde of cash runs out which I roughly estimate to be late Q4 or Q1 next year - perhaps longer but that depends on AMA's ability to curtail expenses post 228 completion, however as someone who has worked in systems and SW development I know that significant costs often continue post release - we'll see?
No doubt this will be a much better year for AMA and I believe significant contracts will come comencing late Q2 or early Q3. I don't expect anything from a large OEM - this is probably still many years away. But NetJets and others should sign on and hopefully begin installations on say 20% of their fleet per year over 5 years. If these installations can offset the negative cash burn then AMA will survive and prosper longer term. If not, I don't want to be around for the next financing. I'm hanging in for now because AMA has so many positive things going for it and I believe they will prevail but due diligence is required in the area of expense management and projections, current backlog, planned installations Q/Q 2011 and also projections regarding expected new contracts post 228 release.
Just some of my thoughts. In the coming weeks (and months) I will endeavour to create a more detailed revenue profile as I think it is key. The expense side should be a lot more straight forward.
GLTA, Dan