Torch Production Equipment NRI'm happy about the improved production time and reduced cost related to the investment of the torch production equipment; A great capital investment. However I would temper expectations revolving around the idea that this is specifically intended for the iron ore pelletizer torches.
Why? Because Pyro uses their plasma torches for more than just the pelletizers. They're used in the 3D powders, the waste destruction, and so on. The NR does not indicate this is for anything besides plasma torches - which happens to fit into several of their business lines. Furthermore, they have previously stated that the iron ore torches are entirely constructed off site. Unless this has changed, I'm not so sure this is for the iron ore torches. This would be a good question for Peter on Agoracom.
So, as a prudent investor and supporter of Pyro, I would consider this an investment in all of those business lines - not just iron ore pelletizer torches. Although I would be happy for this to end with a big pelletizer torch order, I would be cautious on that assumption for the reason stated above.
And wow - I don't get the price swing down today; I see many small caps are eating dust today, but given the powder line is sending qualifying samples and should start producing recurring revenues in the coming months, this is too significant of a drop given the great news lately. Most importantly, it is evident we can expect some nice contracts this year based on what we know, and we can expect great things to come in the coming months and years. A great long term hold. I hope people begin to buy on these dips. I fear the market conditions are forcing people to pull out of riskier stocks and go into safer investments like consumer staples, utilities, industrials, etc which may leave us stagnant until Pyro really has some terrific news. I'll still be holding.
GLTA