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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 Apr 26, 2024 9:57pm
137 Views
Post# 36010632

RE:Maybe tell me

RE:Maybe tell me Ramman, with all due respect, let me inform you of things that I "know".  I "know" them because of information that is disclosed publicly and if I were to ask Crossland about them, it is very likely I would get the same answer as in his presentations.  

First, 50% margin is solid and it is far from something that you should count on. Historically this is on a higher end of the range.  Go back and pick randomly some financial statements over the past decade and you will understand this to be a fact.  But this is not what this discussion is about.

From whatever chatboard you got someone saying that a $26 million backlog to be filled within 3 years, is completely baseless.  Completely!  And if you have been doing some basic research and even reading news releases, you would come to that conclusion yourself.  And please don't go to any company and ask them to comment on what some faceless poster put there, especially when a few faceless posters provide verifiable information to the contrary. 

Here I go to try to give you some sense of what you are looking for. 

It is not a $26 million backlog.  It is $22.9 million.

3 years?  NO WAY!!!!  Every single news release announcing bigger projects puts a time estimate for completion.  Go through them and you will find that the majority expects completion within 12 months.  You may find some 18 months but I don't think you will find one that went beyond that let alone 36 months.

Jan 27 NR - project implemented and revenue earned "within the next 12 months"
Jan 10 NR - "within the next six months"
Dec 7 NR:  "within 12 months"

And I am not going to continue.  During the last conference call, Crossland mentioned that it generally takes a year for these turnkey heat recovery projects, consistent with what is disclosed in news releases.

Conclusion:  $22.9 million backlog will be largely implemented and earned within the next 12 months.  That's your Q4, Q1, Q2 and Q3 minimum total.  That we know, beyond that one can make some reasonable assumptions, as I had done and explained where they come from.

Can we all benefit from knowing everything that is going on?  Absolutely!  Does every company provide guidance?  Absolutely NOT.  Do some microcaps and smallcaps provide guidance?  YES.  And a few where I invested partly because of that guidance, I lost effectively my entire investment because reality was not even close, not even 25% of it. So, I would rather have a guy like Crossland that is dry but delivers results versus someone that talks up a storm and delivers nothing.  Granted, if I get on the front end of a huge pump and get out close to the top, I will take that, because I earned it for having put some trust where trust was not deserved and lost a pile of money.

I've been here for more than a decade.  If things continue looking good (i.e. PDA's keep growing as a pre-sales metric), I will continue being here.  What are the odds of that?  I don't know, the numbers are lumpy but improving, they are expanding their facilities, they are hiring people.  Their products are delivering positive results as evidenced by multiple repeat orders by some customers, and they are in the right energy cost savings, emission reduction space.

If you consider me as one of the pumpers, you are amusing some that consider me a basher and a shorter.
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