Pyrogenesis going forwardGood day to all!
September is looking at us squarely in the face now, and the 28 degree days I've enjoyed in beautiful and friendly Manitoba for the last 90 days are starting to subside, and my 11a.m. wake up time is beginning to see it's end for the year as my children begin heading back to school(maybe) during these uncertain times.
For Pyrogenesis "Longs" like myself, the end of August has been much anticipated. We are expecting significant news regarding the signing of torch contracts, we are that much closer to closing with the US Navy, there is an uplisting coming at some point, the PUREVAP processes that we are working on with HPQ are just about to produce an entire division with a proper future regular income, among many, many other things of course.
It is very easy to see all of this and think about what will happen with the share price. All of the above nameds things obviously will have a positive effect on the share price, to an amount that we can only be predicting(for the record, my predictions are high). What isn't easy is what comes next, and this is something I am looking forward to.
When torch contracts, drossrite income, additives, purevap, and other investments begin inflating the bank accounts of Pyrogenesis, it will have the direct effect of inflating our investment accounts as well. This is a beautiful and normal thing when a company begins maturing from exclusive R&D and begins profiting from said R&D. Be it $90mil, $500mil, $1.5bil, or $15bil of income added to our statements, the next phase of our dear Pyrogenesis, and of course, our dear investment accounts, depends on one thing going forward after that point.
WHAT HAPPENS TO THAT MONEY?
Return on Equity is the difference between a one hit wonder and a future hall of famer.
I've heard it suggested that a big one time dividend would be favoured by some. I have read that it should be put towards seeking out more sales, or advertising the business itself to find more customers and increase it's notoriety to the world. It should devote it to spinoffs, maybe aquisitions of warehouses and processes to raise the margin on products. I've heard about share buybacks. Nothing is off of the table I'm sure, and all of these paths, save the dicidends, could have a great positive effect on the return on equity we see.
This is where we as investors will benefit above and beyond the coming "bump" in Pyrogensis's cash reserves. This is what seperates the cream from the crop so to speak.
My personal hope is that every single dollar that comes in is directed towards business growth, reinvestment in Pyrogenesis, but not so much as to have it be ineffective. Just exactly the amount needed to continue to grow at a healthy clip, and maintain or increase profitability, and only to grow when the profitiablity exists.
If the cash reserves are greater than what is needed(oh boy I can't wait!), and the share price is still not reflective of the mid term future value of the company, I truly hope for share buybacks. Share buybacks of a company with a growing future not only increase the earnings of each share that still exists, but also shrinks the share pool, creating a greater overall return for existing shares. If the share price is ridiculously high at the time, I support a one time dividend. Who doesn't love dividends?
Anyways, as Pyrogenesis "Longs", let's not lose sight of our own interests, and remember that our livelihood as far as Pyrogenesis goes, will be determined by what it does with all of this future(and current) income that is on it's way.
Cheers!