RE:SICPA improving fuel tag&trace offering with BIG DATA Zen: I was starting to wonder how long it would take you to find this Arundo deal.
I have to admit that it’s not quite clear to me how the Arundo services fit into SICPA / EUO picture. Here is what I found some 2 weeks ago about the terms of this deal (half way down the page):
https://www.dn.no/nyheter/2017/11/05/1608/Teknologi/lite-norsk-teknologiselskap-skal-hente-inn-160-millioner Google translation:
Contracts
In parallel with the issue, Arundo has entered into several contracts. The most prestigious is with the Swiss company Sicpa. The Swiss company has for decades been the supplier of ink for the printing of banknotes. In recent times, the company has focused on providing systems that enable governments to monitor the flow of oil and gas from well to market. Arundo has now reached an exclusive agreement with Sicpa to deliver the digital solution to monitor this flow of oil and gas. "We have now received the first contract with Sicpa to deliver a solution to a country we can not name. This contract is downstream and is 3.5 million dollars a year for 15 years, says Ramsy.
There was a more detailed article but it has since vanished.
The fact that this information has been out there for 2 weeks plus and has not influenced EUO’s share price leads me to believe that this is not all that material to EUO but just in case I misjudged this , have been building a small long position. Purely a trading position as I see this as a very long term bet on SICPA’s part and given EUO’s somewhat time limited benefits and the skeletons.
Regardless, SICPA is shelling out $3.5 Mil/yr to a fuel marker related subcontractor for the next 15 years. That’s a commitment much larger than the EUO commitment.
EUO is IMO a cesspool but that doesn’t mean that we can’t benefit from knowing cesspools ... :-)