Enerdynamic Hybrid Technologies Corp. EDYYF

RE:Definitely a massive contract...but I have questions.

[whodathunkit]

JordanDee wrote: Full disclosure I bought on momentum considering a swing trade...after reading the NR and doing some dd this will definitely be a hold. The big question for me is this; I realize the ontract is massive, "50 houses per month for the first three months, increasing to 100 for the next three months and finally 200 houses per month thereafter..." given that the customers pay $30,000 (U.S.) to $35,000 (U.S.) each, that's between $13.5 - $15.75 mil in the first 6 months. BUT what is their profit margin for their services?? I'll do some more digging tonight but if anyone has some quick answers it would be greatly appreciated! 

thanks,

JordanDee

From my perspective, first of all the selling price of the house is not what EHT will be getting.  They say the customer will pay x but not we will bill x.  They are supplying the components but I'm sure some of that sale price will go to installers etc.  So revenues will not be as high as people are suggesting.  EHT, from my memory,  has never said what their portion will be.  Second, revenue means nothing without margin.  And once again we don't know what that margin will be.  And lastly, they have been making announcements for ages.  Usually it starts off with a date and then as we close on the date a new announcement comes out saying things like "in the coming months".

I think that is the problem.  Lots of announcements but still no revenue.  Always just over the horizon but now quite there yet.  This stock will stay where it's at until we start hearing about shipments.  And then if they make money on it the price will jump again.  Until then, it's just a bunch of hurry up and wait.

Cheers.