RE:RE:EHT Big news important to come...We are waiting for some kind of transaction confirmation regarding a ~$300 Million contract and other JV. Read the link from Stockhouse.
https://www.stockhouse.com/news/newswire/2018/09/11/big-deal-and-massive-revenues-for-tech-junior
For small-cap investors, 2018 has been a challenging year, with valuations in most sectors very compressed. Many of these companies are doing great things to advance their operations, but the market is only actually rewarding news that translates directly into higher revenues and an improved bottom line.
This disconnect in valuations means that small-cap investors have a great opportunity to cash in when one of these companies turns the corner on operations. Such an opportunity is now in focus for Enerdynamic Hybrid Technologies Corp. (TSX: V.EHT, OTCQB: EDYYF, Forum).
On September 10, 2018; Enerdynamic announced a massive, new deal for the Company’s modular/affordable housing division. In conjunction with the Government of Ghana and local joint venture partner Unified Construction and Investments Limited (UCI), EHT has announced a final agreement to construct 100,000 affordable housing units in Ghana, at the rate of 10,000 units per year for 10 years.
That’s big news. But the biggest news for investors is how this translates to the bottom line for a junior tech company with (even after this news) a market cap of only $14.2 million (CAD). Any investor with a calculator can crunch the numbers here.
The project is slated for 60,000 2-bedroom units and 40,000 3-bedroom units. The 2-bedroom units will sell for US$33,600 and the 3-bedroom for US$42,000. The EHT/UCI joint venture currently estimates a net margin of 7.5%-12% (approx. US$2,520-US$4,032 per each 2-bedroom unit) and will provide future updates as the project progresses. Initial building for this project is scheduled to commence in the 2nd quarter of 2019.
Even if we take a number near the low end of these margins (US$3,000 per unit), 10,000 units per year translates into US$30 million per year of profit, and US$300 million over the ten-year term of this major deal.
This is not merely a “memorandum of understanding” or a “letter of intent”. This is a final agreement with a firm date to commence construction and a specific annual quota. Naturally, the CEO of Enerdynamic, John Gamble, was elated in announcing this news.
"This project, the largest in the history of the ENERTEC product line, is the culmination of many months of work with all parties. EHT has been chosen for this project not only because of our superior ENERTEC system, but also the team of partners that we bring to the table."
This is a Company that has received extensive, previous coverage from Stockhouse. We introduced EHT with a full-length feature titled Bigger Than Lego? The analogy laid out for readers was simple.
Lego is known as the best “building material” with which children can play. EHT produces a superior building material for the real world, it’s hi-tech FRSIP construction panels (Fiberglass Reinforced Fire Retardant Structural Insulated Panels). These FRSIP panels are the key component in its ENERTEC product line.
Read more at https://www.stockhouse.com/news/newswire/2018/09/11/big-deal-and-massive-revenues-for-tech-junior#9r0bKKGzC2dmGLgs.99