TSXV:WEE.H - Post by User
Comment by
mrtnreaon Aug 02, 2011 11:19pm
301 Views
Post# 18897466
RE: RE: RE: RE: Some observations
RE: RE: RE: RE: Some observations
Ifthe pattern shown by the "Eastern Alberta client" is typical - a fairlylengthy test period to ensure the technology works in your reservoirand develop the data to sell it to senior management, followed by rapidexpansion - the quarterly gross revenue curve in Figure 4 should startto grow exponentially.
Your point above is accurate, conservative and interesting. Senior management for Harvest energy is on Wavefront's board. Not a big sell job there compared to other companies. Combine that with Holler's point today that from the MD&A, it appears that since Zahary has been on the board, he has not signed any contracts for Powerwave tools since Triaxon has already installed 6 tools. One could speculate that he would not join the board of Wavefront without having some experience with powerwave before he joined the board.
The question is, which previous trial is he involved with, assuming he is ?
It should also be noted that KNOC is a joint venture with one of the recent south american installs in argentina
That is consistent with Davidson'sstatement in February "We don't see growing by five or 10 tools a year.We see doubling this year and doubling tools thereafter ......"
Davidsonwould have had pretty good visibility when he made that statement. TheMay 31 quarterly says that increases in the number of contracts sinceAugust 2010 caused the company to increase inventory to $342,609 from$99,969 (3.42X) "to meet anticipated installations."
It should be noted that on BNN in Jan 2008 (video available) Davidson said he expected to have 100 tools installed by the end of the month. I have always wondered if there was a large order just waiting to be executed that got shut down because of the financial meltdown and slashed budgets. The alternative is too bearish for me to consider considering the size of my investment here.
TO CONSIDER: Any financial numbers are "very rear view mirror" at this point as any one of a number of companies with 1-3 years data could put together an expansion like Cenovus that would change things drastically. Will the southern Alberta client (who has expanded once) expand any of their other 4 ( I think ) locations.
The data just keeps getting more compelling and consistant. If history repeats and Wavefront continues with all this great progress .... WEE should be at ZERO in no time (tongue in cheek)