RE:Showing the menu prior to openingGreat insight into possible back room thinking MidtownGuy. I can't help but imagine that this might in fact also serve as a
trap for shorters, with another larger deal right around the corner. No doubt in my mind that my PYR investment will be extremely rewarding soon, not 'if' but 'when'
MidtownGuy wrote: Not to get too folksy, but I once owned a restaurant, and one of the things you do in that biz -- before you are even open -- is reveal that you have had reviewers in for trial runs.
You would then tease a positive review of your upcoming restaurant that's about to open -- revealing some of the menu, and showing the price for some of the main courses to build the hype and show people what kind of restaurant they can expect.
The specifics of what kind of meal the reviewer ate, the overall cost of that meal, and who that reviewer is, is in the whole article coming in the news media's next edition.
Maybe a little too cute of a comparison for something like this, but to me the NR was a great way to reveal the general price of an individual torch unit now, when he might not be able to do so later as part of a bigger deal with the client (to protect the privacy of negotiations).
In fact I hold to the fact too much information has come out for this to be about just a one torch sale and not something way bigger:
- Three months of negotiating from a draft contract in hand
- Comments by Peter about the huge effort into "bringing home a deal like this"
- An out-of-nowhere introduction of a leasing option right around the time of uplisting, Q3, and contract release
- Rampant speculation of contract size that PYR has never really tried to downplay
- Firing back at McWhirters' comments about very small torch orders
- the clent name today remaining under NDA (if this was all there is to be for awhile, their name would have been released, no?)
None of that makes sense for just a 1 torch sale. None of it. So my theory again, to add to below, is that today's release of the 1 torch sale was something Peter packaged into the larger leasing contract, that the client had to "buy" (or allow PYR to say they bought) one torch -- as a way to showcase the product, its general price, and its acceptance by a giant customer to the market before the full story is released. Specific details to follow, once the final napkins have been ironed, and this news has been, uh... digested ;).
MidtownGuy wrote:
Understanding the torch contract news
So, having fun yet?
Here's how it looks like this will work:
The NR today said the client bought one torch. There's no way -- NO WAY -- that all these months of negotiation were about that one sale.
So why did they buy one torch?
1/ Not for modelling. They've already spent money on that. If the client just wanted to test it live, I'm sure PYR would have loaned them one, or at least leased it to them. Buying is permanent.
2/ It's perhaps likely that that torch was so highly customized/modified/specific for that client, they had to agreed to buy that one outright. I don't think it's a test sale. It's just they messed around with that one torch so much they agreed to buy it outright.
Then why announce just one torch sale? Is that it?
The NR of the sale was done so Peter could show the general price of a torch to the market. Given that the client is still under NDA for this sale news, it makes sense. He can show sale price to the market without associating client to their overall contract, because it's just one torch. He was announcing to the world the general price of a torch for a big company.
And this is likely the only torch they will buy.
Why?
Because the actual big contract is for leasing.
Remember the leasign strategy news of a couple weeks back? Peter would not have even mentioned the recent leasing strategy if that wasn't about to occur. There would be no point to mention it. It would be like buying a dog leash, telling people you did, yet with no immediate plans to buy a dog.
So today's release was "Hey market, lookee here, a mega client approves our tech and has bought this for X$. If you're interested, that's kinda the starting price point AND big mega company has done the DD and bought one, so now can you."
Next?
The sale price of one torch has nothing to do with the lease price. The next release is likely for the actualy big leasing contract plus service and support, which can be shown in the aggregate AND with by naming the client.
So next stop on the train is a very large leasing contract plus after sales, that reveals total $ amount and client name, but perhaps no specific torch numbers so a to protect client's per torch deal discount.