Wavefront's realistic profitability potentialThere have been various opinions expressed and comments made over the course of the last few days on this BB since the announcement of the brand new Agreement in the US, and the corresponding idea of Wavefront's potential profitability going forward – here are a couple of my own comments on this critically important topic.
First of all, there are three separate Agreements which I would like to briefly reference and, in turn, help form the crux of my argument, these depicted as follows:
The first Agreement relates to Kuwait, with the corresponding News Release (NR) depicted below. The date of the NR is December 6, 2017, so let's assume for a moment that the commencement date of the resultant three year Agreement is in that same general time period, which leads me to believe that this Agreement will end on or about November 30, 2020, corresponding with the end of Wavefront's 1st Quarter.
https://www.globenewswire.com/news-release/2017/12/06/1234344/0/en/Wavefront-Signs-Exclusive-Powerwave-Distribution-Agreement-in-Kuwait.html The second Agreement, in terms of time sequence, was announced on September 4, 2019 (the corresponding URL depicted below), and constitutes a renewal of this Agreement in the Kingdom of Saudi Arabia (KSA) for a period of one year, ending August 2020. Simple logic dictates this Agreement will most likely end August 31, 2020, thereby corresponding with the end of Wavefront’s 4th Quarter.
https://web.tmxmoney.com/article.php?newsid=5714189430957416&qm_symbol=WEE The third Agreement is obviously the one announced out of the US earlier this week (the corresponding URL is depicted below), constituting a two-year Agreement, ending August 31, 2021.
https://web.tmxmoney.com/article.php?newsid=8146190633425186&qm_symbol=WEE Taken in combination, these three Agreements commence (in unison) September 1, 2019, with the 1st scheduled to end August 31, 2020, in the KSA. This means that Wavefront is guaranteed to be profitable (a grand total of $1,000,000.00 USD, based on $500,000.00 USD from the US; $250,000.00 USD from Kuwait; and $250,000.00 USD from the KSA, which, in combination, total an equivalent of $1,329,350.00 CDN as of September 14, 2019,) commencing with the 1st Quarter 2019, which began September 1, 2019; and ending August 31, 2020 (the 4
th Quarter when the KSA Agreement is now scheduled to end), which constitutes a full year and four consecutive Quarters.
These three Agreements do not take into consideration the current existence of or potential access by Wavefront to any other additional revenue streams or indeed factoring in that each of these three Agreements are guaranteed "minimums."
Even though I am not overly good in math and certainly not able to predict, with any degree of certainty, the future, I would propose the future looks bright for Wavefront and long-term investors who are willing to be patient as the true story about Wavefront and its cutting edge technology continues to unfold and arguably take the global oil & gas industry by storm.
Keep in mind, as well, the huge potential within the US marketplace; the cumulative wealth of information contained in the Corporate Updates and NRs over the past couple of years, which speak to Wavefront’s progress in the Middle East and elsewhere; development of other business opportunities and new technologies across the globe, from India (please refer to Corporate Update dated November 12, 2018; NR dated May 4, 2018); to Norway (please refer to Corporate Update dated November 12, 2018) and beyond; gradual accumulation of stellar oil recovery field results in a broad array of geological formations and geographical locations literally across the globe, leading to renewed Agreements (e.g. the KSA); and the building of all-important relationships in the oil and gas sector. The latter includes Wavefront’s ongoing participation in Conferences/Workshops, wherein key linkages/bonds of trust are fostered and critically important newly formed and long-standing relationships strengthened, a process which certainly does not happen overnight, with a case in point being the upcoming Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) scheduled to take place in the UAE between November 11-14 2019, where Wavefront will be an exhibitor. According to ADIPEC’s webpage, the 2019 Conference is expected to attract 145,000+ trade professionals from over 135 countries and “provides visitors a direct route to the world’s most advanced technologies in oil and gas.” Obviously, not a bad place to be for Wavefront, with the golden opportunity to allow more and more professionals in the oil & gas sector to hear about its cutting-edge technology currently in play across the globe.
As you all know, I have been a big fan of Wavefront for several years now and wanted to express my feelings herein about the Company at what I perceive as a critical juncture in its history.
There will be the usual parade of sceptics and dare I say, naysayers, who will predictably never be satisfied with the Herculean efforts of Wavefront’s CEO and his Team regardless of the progress made; however, with four consecutive Quarters of profitability realistically in its crosshairs and overall interest level in Wavefront’s expanding arsenal of revolutionary technology and consistently proven oil recovery related results, the time seemed right for me to challenge these same cynics to come to grips with the fact that Wavefront is incrementally becoming the technology of choice in the oil & gas sector and that they have been proven wrong, yet once again, in their pessimistic assessment of a great Canadian success story.
At least that’s the way I see it from here,
Atlanticpro1