GREY:LFDEF - Post by User
Comment by
BlueHorseshoe13on Oct 29, 2015 5:19pm
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Post# 24240891
RE:What's the downside at $2?
RE:What's the downside at $2?I'd say the biggest risk (IMO) is that management is spread across too many big projects right now. While they were announcing the constellation and DEIMOS deals you had the team on two or three continents calling in on crappy lines, all of which made it seem somewhat uncordinated. You've got
HRC commercialization
gen 2 senors
constellation works
closing Deimos
integrating UR and Deimos operations.
Any of these could flare up and consume big amounts of time through a three month period, which would take them off the task of closing deals for EO imagery. It's not a risk to the company, but it might be a risk to the SP in the short term.
I think the more fundamental risk to the long term model is that the HRC videos require a lot of post processing, which would undermine their gross margin assumptions and the number of images they can actually get out.
Everytime I make a bullish post the SP gets hammered, so I thought I'd try something different this time. Next up, rat bones and tea leaves...