RE:RE:Think about thisThank you, just I have multiple times seen folks project EPS, P/E ratios based on several billion dollars in one year.
Personally, I think 3 years is still incredibly optimistic.
I think 10 years for the contract is far more reasonable, maybe as low as 6 or 7 for each customer. This does not of course include any servicing and maintenance revenue.
By my napkin math we realistically could be seeing annual revenue of $100M $200M in revenue in a couple of years, but not $1B.
You will find fewer people here that are more conservative than I am in regards to share pricing and potential revenues, but I respectfully disagree with you on this, and HERE IS WHY:
- CEO has stated that the company has manufacturing facilities and parts suppliers shored up specifically to meet projected demand that he sees.
- CEO has stated that the torches are bolt on replacements, without a need to have any sort of impact on the production line of the iron ore pelletizers.
- News releases and due diligence combined, along with questions answered by the CEO, point to a highly likelihood that client a is VALE, and the order is likely for 500 torches at a cost of $3M USD each.
I'm not taking issue with your projections of $100m/200m per year, I just feel that the difference between that line of thinking and the $1.5b/$3b, is merely scale of manufacturing. I personally, despite my extremely conservative investment views, believe that Pyrogenesis has positioned itself to move thousands of torches per year, as I also believe the market is there, and I believe the CEO understands this as well.
If they can move that many torches, the revenue will be there in a very tight time frame.
Cheers!