RE:RE:RE:RE:RE:LOI to purchase companies the $400Million is over 5yrs. Because all the communication and even inflection from the principals in their dialogue in the CC suggests that what is pending is possibly even larger...I have always assumed they will need to build out their existing facility to be able to execute on $100million in/by year 3 or aquire additional manaufucturing capacity/scale thru a synergistic aquisition.
I will suggest this again that fwiw I fully expect 150million O/S by this time next year and a mid cap market status meaning were heading higher for sure in first part of 2018 and beyond if EXECUTION as being guided remains on que...as their order interest que is that robbust now and pending.
Having said we lost something like $8million in market capitilization since Monday as the market was expecting the announcement of the first PO ahead of the CC.
I actually think we lost more like $20million in market cap cuz had they delivered before or during the C.C what ther market is demanding we would IMO be between .55 to .60 per share now post announcement of PO by comparison to todays close...they (the market) are fixated on the first PO announcement of the massive sept 6th Dist deal vs any and all else it appears...INFACT i will go so far to suggest the company could announce a $2million new contract and it may have neglible effect on moving the valuations much TILL the first PO is finally announced. That should not be the case but I am getting the feeling in my craw that unless they announce something large in $ not related to the Sept 6th PO...if its small in scale and scope its going to be glossed over.
Personally? I would have held off hosting a C.C till the first PO was in hand. I think this CC was used to explain why its not yet in hand that a NR format could not provide.
Having said that. I also believe had they announced by NR the US Patent...and other items discussed yesterday in a NR vs C.C format? as in separate NR generated X days inbetween to the wires? we would have moved higher than what the C. C provided.
You host a Conference Call when you have something of major order of magnitude to discuss and to not have new beef put out in a NR heading into the C. C as bullish as it was on the present and the outlook? to me was a mistake and I hope when the next CC is held by MRS they do it to coincide with the release of material news and hold an open question period AFTER they address the email questions sent in for obvious follow up purposes.
We are early in this. These guys are pros and working the midnite oil. Just a little to much midnite on the PO at this point and not enough OIL as I for one believe it should have been announced by now. What the hold up is? who knows. they know and I am sure are positive its just just around the corner but cannot suggest that directly in a CC but have to be carefull under RegFD
with how their forward looking statements are made. I am sure they had a feedback betwen their own counsel as to how to answer the questions sent in without looking like they were front running ahead of news events to come.
Unfortunately now as we move forward these guys must deliver on the PO. and in a reasonable amount of time as much time has already passed. the market will not react favoribly IMO if they don't and they are aware of that...more than anyone on this thread can probably understand or reinterate to others...what they announced on Sept 6th was company making on its own...it was a massive deal announced,,,and with that comes the corporate fudicary responsibility to deliver as laid out in the NR.
Now they must at some point and it has to be soon...I don't mean monday...or by next Friday...but soon-give the market what is not yet priced into the current valuations...moving forward into deliver of product for the first leg of the Dist Deal. Right now its being priced as tho it won't materialize. That's temporary. The announcement could come at any time. Any day and they state they remain on que for PO by end of 4th que which means end of december 2017.
My gut tells me their not going to hit it however.
My hearts says yeah its possible.
But hosting the confrence call without announcing it tells me-and I admit I may be wrong and hope I am...that its going to be pushed out into early 2018 but that other things in their robbust que will be of contractual status first and will drive valuations thereto.
This company has come so far so fast...not fast enough for some but fast by many measurements of development time. Their financers know what we don't know.
Whats in the que...how big the que looks from a dollar perspective.
Their BOD and outside advsiory committee are best of the best
and as connected as it gets regardless of company size.
Therefore I think anybody trading out is playing a fools game.
As current valuations indicate disappointment to some degree.
But this thing has shown itself to be resilient and to come to the
wires when least expected with head shaking type material news.
IMO then...STAY TUNED.
The best is yet to come.
theKid5 wrote: I'm going to listen to that part again. Were they referring to the orders they had or the large military PO. I know they are not scared of any order and all thay but I'm sure they have to expand for a 400,000,000 contract. I'm still thinking the LOI is for further expansion.