TSXV:MRS.H - Post by User
Post by
Hiddensecretson Sep 17, 2020 9:50am
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Post# 31573588
What is $ 326 million compared to $ 4 BILLION CONTRACT
What is $ 326 million compared to $ 4 BILLION CONTRACTUnifire was 1 of 6 companies that was awarded a $ 4 billion contract 2 years ago and of that contract they only got a paltry part of the orders, something like $ 150 million on $ 4 billion.
Now they are awarded UP TO $ 326 million which is less than 10% of what they got 2 years ago of $ 4 billion.
What part of this new contract will turn into orders is questionable but track history would suggest a low amount would convert into orders.
The other issue is MARGINS which are very low. To outbid 129 other companies it means that you must have aggressively priced your product to almost give it away.
And then you have financing costs, AR discounting fees and, payment of big debt on books.
So for all the hoopla and jumping investors want to see, the reality is that big numbers do not amount to much if MARGINS are low, financing is expensive and debt is high.
This is my personal opinion.