Eurocontrol Technics Ord EUCTF

RE:RE:13%!

[Spiegel62]

lscfa wrote: McWhirter says EUO looking for partner to go forward with Xwinsys product because product is very expensive........ I believe that EUO will sell this tech outright or for a royalty stream. EUO is too small to be involved in the manufacture and sale of equipment that costs $1 million each.

green24 wrote: EUO is his biggest holding.   Top pick?

License for a Royalty stream would be sweet. Imagine 2 royalty streams at the same time : SICPA with GFI and whoever within the semicon space with XWinsys..... In a low to negative interest rates World where oil stocks like SGY still can get to trade at a messly 6.5% dividend yield, what do you think EUO will trade when it starts spinning cash back to shareholdlers like mad? If anybody thinks the SICPA deal wasn structured the way it was in order for EUO to pay out dividends he is out to lunch.  I hereby predict EUO will become a market darling within a year and might trade well above 1 buck by the time the first dividends are announced. Here´s my conservative model for yield adjutsed stock valuations JUST on the SICPA deal ALONE. Add another layer of cash flow pouring in from any XwinSys and it´s all Blue Sky. Incidentally the market XWinSys goes after is 40 times that of the fuel marking that SICPA is now aiming for with GFI, so royalties out of XwinSys could be simply mindblowing. Also Xenemetrix spectometers sales are left out even though Xenemetrix has a supply agreement with SICPA for their spectometers on an exlusive basis. Note McWhitter also mentioned rollout of Petromarine in the works

Fuel marking programs total Worlwide stated market size : USD 1B

% of market taken by SICPA / Royalties / Dividends (70% of royalties) / Valuation at 10% yield 

5% : USD 50M  =  CAD 70M at 5% = CAD 3.5M, Dividend out 70%, 10% yield =24.5c
10%  :  USD 100M = CAD 140M at 5% = CAD 7M Dividend out 70%, 10% yield = 49c
15% :USD 150M = CAD 210M at 5% =CAD 10.5M Dividend out 70%,10% yield= 73.5c
20% : USD 200M = CAD 280M at 5% = CAD 14 M Dividend out 70%, 10% yield = 98c
25%  : USD 250M = CAD 350M at 5% = CAD 17.5M Dividend out 70%, 10% yield = 1.22 
50%  : USD 500M = CAD 700M at 5% = CAD 35M Dividend out 70%, 10% yield = 2.44