RE:EVENT.. I took in the corporate update that Jay Hutton did yesterday, I thought the call went very well, most of it was focused on Modela.
Biggest take away for me was the fact that the Modela deal will generate 30-50% of the revenue for VSBY over the next 2 years. The revenue from the Modela deal suggests to me the share price of VSBY is currently undervalued, I believe the current share price should be around $1.25 to $1.50 so lots of room here to have a bit of run.
Jay acknowledged yesterday the share price is undervalued right now and he felt it was due to the market not fully understanding the Modela deal and that it's up to him to change this lack of understanding.
When you factor in that 50-70% of the revenue will be coming from other sources over the next 2 years, no doubt further announcements are forthcoming along with substantial share price movement.
I have attached a slide that highlights the Q1 milestones, what's noteworthy again is the coast to coast Retailer deal that should be done sometime in May, at this point I'm guessing it's Canadian Tire as they are doing a pilot right now in Victoria BC.
I'm long on VSBY!
