GREY:XEBEQ - Post by User
Comment by
Ciaoon Aug 17, 2021 3:10pm
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Post# 33718109
RE:RE:Speaking of investing long
RE:RE:Speaking of investing longI recall that margins for service and maintenance are higher than that for selling capital equipment. No different than car vehicle sales, higher margins come in from servicing.
savyinvestor333 wrote: You have to remember that service companies are low margin slow growing businesses. The real reason they are buying them is for the service and parts sales on the Biostream units. If we don't sell a ton of the Biostream units in the geographic areas as our service companies tare located these service companies will not generate the returns a growth investor wants to see.
Newtrader1982 wrote:
If they execute 250 million just from the service side by 2025 this is trading at less than 2 times 2025 revenue just the service side alone. The market is becoming completely irrational about xebec valuation at this point but I guess extremes go both ways.