RE: RE: RE: RE: upcoming event apr 16-19 I'm pretty sure they said GROSS margin not net profit margins. Gross margins may be near 50% but I think net profit margins will be closer to 10% (which is still quite good) until they are producing over 1000 units per year.
Management also noted on the last call that ASP (average selling price) has been coming down and is now around $100,000. The CEO also said they are trying to reduce this further to try and make it more affordable to wind farm operators. They also mentioned reducing the cost to produce the unit in half already and want to do this 1-2 more times in the next year or so. This leads me to think that Vindicators will likely sell for $50,000 each and cost them around $25,000. This is just a guess but I've plugged this into my model (will post later). I'm still VERY bullish though because the market potential is still vast. It might even be larger with a lower ASP.
If they sell 1000 units in 2013 @ $100,000/unit and net profit margin of 10% with 150M fully diluted shares we and a p/e of 15 we get:
Revenue: $100M
Net earnings: $10M
EPS:
.067
Share price: $1.01 (still a 6X return in one year!)