FormerXBC Inc XEBEQ

RE:RE:When Q1 is released

[Zipolitemexico]

On your comment about new US production facilities...the company has already set the wheels in motion and recently hired a Engineering resourse to  oversee and execute transfer of design control from Blainville to a US-based production location. This production addition could be accomplished by acquiring a company with with similar production capabilities or simply outsourcing production to contract manufacturer. Much of the content of the Biostream product is procured which simplifies the whole process. 

tamaracktop wrote: Here's one of my inventory of possible surprises.
   A bulk order of Biostream units. Perhaps over a longer period of time with guaranteed delivery dates stipulated in the contract. Just like the TTC contracts with bombardier for streetcars.
   Did you know that right now Xebec can only produce 20 Biostream units a year? Not very impressive is it? 

   But the market would respond quite pleasantly to an announcement that Xebec has to acquire new facilities, or expand existing facilities to meet demand. 
    Biostream sales could actually become a highly predictable recurring revenue. The orders would come for delivery at a later date. They would constitute backlog. part of Xebec's marketing campaign fot Biostream emphasizes rapid delivery and installation. If Biostream takes off, that promise will be a thing of the past.
   "We need 20 this year, then 40 next year...."
    20 units would be $30 million in incremental revenues. Revenues that are not yet incorporated into guidance. Biostream is high-margin business. One of Xebec's stated objectives has always been to increase margins to close to 41%. Their recent margins are negative. 
   From what I understand, the reason that this disastrous result happened was because Xebec was including delivery and installation in their quotes. A sort of loss-leader approach. That practice is no longer in force, as I understand it.
   A simple fix.
  This suggestion of a single large order is a real possibility. Such an order could come from any quarter, literally. It could come from anywhere in the world. It could come from China certainly (  30% of Xebec China is owned by a State-Owned Chinese conglomerate ), it could come from Australia, the US., Brunei, Germany, Italy, France, Singapore, South Korea.. You get the picture.
   I could go on and on about this being a possible unanticipated development. One that is far from impossible. The market would react violently to news this sort of development. It would be a seismic event

   I have perhaps a dozen or so other possible developments in mind that would surely have a huge effect on the stock price. I could talk about them at length, but I'm not gong to.
   Several of them are more likely than this one. Several aren't.