Eurocontrol Technics Ord EUCTF

Be Greedy When Others are Fearful

[zenvesting]

Patience is the second most challenging aspect of investing in microcaps, second only to finding quality companies with solid fundamentals and prospects early....companies that are worthy of patience. 

EUO has some of the most solid fundamentals you will find in a microcap tech stock, they not only have sold their fuel marking technology to SICPA, the leader in the anti-counterfeiting market world wide, but they are working on two other transformative technologies with respective leaders in those fields. 

1.) Their work with Netafim in precision agriculture, particularly the development of the ability for EDXRF to quantify nitrogen concentrations would be a major break through for the entire XRF market place, where several other much larger competitors have not been able to accomplish this capability, and where the technology would truly be transformative to the agriculture industry, allowing real-time decision making on crop management, as opposed to sending samples to the lab and awaiting results before making soil-specific fertilizer recommendations.

2.) The company's description of XwinSys from the MD&A also suggests it is at the forefront of it's field:
.....Testing of the XwinSys NMT technology has demonstrated superior performance for a wide variety of semiconductor applications. XwinSys continues to perform advanced demo applications for its prospective semiconductor customers with several of the largest global companies that participate in this market. 

That being said, There are a few things to look forward to here possibly before 2016 is ended: 

1.) This from the MD&A suggest XwinSys could have some positive developments before the year is out:

The Company has budgeted to invest up to US$2.0 million in fiscal 2016 to advance XwinSys towards achieving certain milestones, and depending on the outcome of these milestones, the Company may begin commercial production in late 2016. 

2.) This from today's PR suggests more information about Netafim's intentions could be known before year end: "Field trials will commence in the second half of 2016 with a current view to commercialization mid 2017."

3.) The Philippines Bureau of Customs (BOC) is overdue to make a decision on a new fuel marking program, which it estimates would cost $25M/year, which would be enough to drive SICPA's 5% royalty payments over the minimum $1.5 million:
Philippine BOC fuel marking