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Thermal Energy International Inc V.TMG

Alternate Symbol(s):  TMGEF

Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to the fortune 500 and other multinational companies. It operates primarily in North America and Europe but also sells its products and services through representative agents throughout the rest of the world. It markets, sells, engineers, fabricates, constructs, installs and supports two technology lines, such as heat recovery solutions, including direct contact heat recovery solutions (FLU-ACE), indirect contact heat recovery solutions (HEATSPONGE and SIDEKICK), and condensate return system solutions (GEMTM steam traps). It is also developing several other technology lines, including low temperature biomass drying systems (DRY-REX). Its solutions can recover up to 80% of energy lost in typical boiler plant and steam system operations. It has two primary operational bases of operation, one in Ottawa, Canada and the other in Bristol, United Kingdom, covering Europe and the rest of the world.


TSXV:TMG - Post by User

Comment by Mostlyseriouson Jan 10, 2024 5:54pm
100 Views
Post# 35820422

RE:RE:RE:Chewing through it

RE:RE:RE:Chewing through it I don't understand why the significance of the news release is being questionned.

It is a newsworthy announcement for various reasons.  While not in the millions of dollars like some of the recent announcements, it is still rounded up 3% of last year's revenues.  BEI's individual units are mostly under 6 figures, so it is a significant deal for that business line - biggest deal in the history of the company.  So, quantitatively it is significant.  

As described in the newsrelease, the client was impressed with one unit that they decided to purchase additional ones thereby demonstrating the appeal of this product against the competition.  And finally, it is good for anyone that may be in the market for economizers or for potential investors to see such a story, therefore, a promotional as well as informative news release.  so, it is qualitatively significant as well.

I don't know if the scalability is being brough up as an issue.  As a reminder, a couple of years ago, BEI moved into a larger manufacturing facility. So we can at least say that they are in better shape that way than in the previous facility.  I had also been concerned in the past about Thermal's lack of aggressiveness and risk taking to grow the business faster. As far as we know, which may be partially substantiated by repeat orders, they have delivered projects in the past on time and on budget, implicitly through sound project management.  I have no reason to believe that they will not be able to fulfill this order and trust that if they are seeing BEI demand that may outstrip capacity, they will find interim measures such as subcontracting some of the work until they right-size their internal capacity.  Not being able to keep up with demand is indeed a problem that can threaten companies, but not having enough demand to generate positive cashflow is a less appealing problem.

This is GOOD news, well worth publicly announcing. Agree to disagree with those seeing it otherwise.


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