Eurocontrol Technics Ord EUCTF

RE:An Illustrative Revenue Calculation...Future Model

[shawshank]

BINGO, THE $ from a licensing model are so much more advantageous than the model prior to the extent it was not clearly or fully understood because ROWLANDS COUlD NOT GO INTO GREAT DETAIL DURING THE LOI PHASE...as negotiations remain underway altho I suspect at this point papers have been forwarded to each companies legal counsel for the binding language and committement levels andthererfore  lawyer scrutiny.

ONCE ANNOUNCED AS A DEFINITIVE AGREEMENT IN THE WEEKS THAT FOLLOW YOU WILL SEE ROWLANDS EXPAND AND EXPOUND ON THE SICPA DEAL AS WELL AS McWHIRTER THRU THE EXPOSURE OF BNN ROB TV.

The licensing and royalty stream model is thee LUCRATIVE HOLY GRAIL OF MEGA PROFITABILITY and the valued PATH OF LEAST RESISTANCE IN ACHIEVING IT

SS

TheRock07 wrote: Based on technical information contained within the LOI text, the royalty base will be expanding by a factor of about 3 , as it will include logistics and various supporting contracts.

A second source of associated revenue will be more business for  Xenemetrix's analyzer product line.

Currently, the sales ratio is 1 in 4.

That is, for each  $4 dollar of Petromark business, Xene will earn about $1 in sales.

Lets consider a very realistic contract by Sicpa of $50 million per year ( I say realistic, as Sicpa will go after the larger oil producer and consumers ).

EUO would receive $7.5 million in free cash flow royalties per year.

It would also earn $12.5 million due to cross selling of Xene.

Total revenues would amount to about $20 million US per year plus recurring revenue from the current sales base.

This steady guaranteed future cash flow will support R&D to advance and commercialize new products at Xenemetrix, such as PetroMarine, and at XwinSys.

EUO's share price will rise in very steep steps, as substantially new contracts are secured by Sicpa.

With $0.20 per share in net cash and no debt, and a garanteed future cash flows, EUO is a steal at these prices.

At just 5 times sales, a single $50 million contract gets us to the $1 level..