GREY:EDYYF - Post by User
Comment by
Bobbyryan6on Mar 12, 2017 3:56am
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Post# 25968986
RE:RE:RE:RE:risk/reward of EHT
RE:RE:RE:RE:risk/reward of EHTI would first like to note that I have read some solid opinions recently with regards to EHT and its possible outcomes going forward. Some are opptimistic and some pessimistic, but most seem to have merit if your viewing them objectively.
If I could also add....Lukasdupola mentioned that it was all about Africa, and namely Ivory Coast. I agree in that the Africa business is what would really move this stock at this point. However I would not discount in any way the value of the Ghana MOU and what it could do for the SP if it were to be signed instead of (or as well as hopefully) Ivory Coast. Although smaller than the Ivory coast proposition, the math that would be involved in 11000 units is substancial. Without knowing the exact costing I can say for certain these units are not manufactured and assembled for hot dogs and beer money. This would be major all the same and still far larger than anything EHT has done to date. Both of course together is the dream scenario and would surely send the SP to new highs IMO.
In the original chain of this post Mingzhu discusses the Risk/reward of this "play". I agree with all of it. If I could just add on a few points. Not entirely sure about the bankruptcy risk in the near term but if indeed the 7 million slated to arrive in quarter 4 (i beleive) is collected it should alleviate any concerns for a little while after that. As we are talking about EHT though, I guess by no means is it a gaurantee. A small advantage to this transaction though is that it is a Domestic deal. Thus if needed, any legal recourse would likely be much easier than say something overseas. Lets hope thats not part of any future discusions though. It could also be noted that they may also be gaining further revenues in the form of Northern Shield, Georgian Bay Medical and Almacen Sustentable (Mexico) although no dollar values were announced with regards to these.
I must admit though I am little concerned by the timelines. By that I am not saying I am in any way surprised that Ivory Coast or Ghana is not signed, sealed and delivered at this point. I am more surpised in that EHT actually committed to set timelines when they are so relatively inexperienced in handling contracts anywhere near this magnitude. They basically painted themselves into a corner to close at a certain date(s) and have yet to deliver on any of thier self imposed deadlines. Big mistake on thier part obviously and surely reflecting in todays SP of course.
But in saying all this, and assesing the African housing and solar landscape, I am feeling confident that its getting closer to becoming more of a "when" and less of an "if" that they can get something done.
Fingers are still crossed though !