RE:RE:RE:Promoters "One final comment. In Q3 Pyro did a very good job of getting its costs down without negatively effecting operations. And it has gotten its gross margin back over 40%. That's a fact and that's significant."
I stand by this comment. Why wouldn't I? I'm not contradicting myself. Not on the least.
The financials confirm that costs have been reduced and the gross margin is over 40%. Pick away at how and why but the financial summary, included in the Q3 financials, does that for us. If you need more information as to whether these cost reductions are sustainable or whether the gross margin will be maintained in future quarters I will refer you again to management. One time measures that reduce costs are not the least bit unusual.
Here are some important points:
-costs fluctuate from year to year and quarter to quarter. In the recent years where Pyro has moved from green (greenhouse gas emission reduction) to multiple verticles as outlined in "Q3 2024 Production and Sales Highlights" Pyro has made enormous strides. These strides are very capital intensive. It builds things that are expensive to build. Lab testing, pilot plants, scientific and engineering studies, just to name three areas of extensive costs. During this period of transition it is not the least bit unusual or surprising that costs increase while revenue lags. This point has been made by many posters. I'm really impressed that Pyro's existing WCD is where it is. In relation to what it has built, it enjoys an overall debt liablity that I consider to be low. Very low.
-The gross margin concern that has been raised by some posters does not give enough or any weight to the fact that it is normal when a company is still in the early stages of commercialization for this to be the case. The revenue lag effects gross margin just as it does WCD. I think of it it terms of a house builder. Hard to sell a house on spec. The builder has to build something to show prospective house buyers. Costs therefore increase with no immediate revenue increase. WCD can rise as can gross margin. Just a fact of doing business.
-revenues: there are no guarantees but there is a significant pipeline of deals. Read again "Business Line Developments" for near term, mid term & long term potential deals. For me, the issue comes down to trying to quantify the pipeline and give it some sort of value. Without going into too much detail (or any detail really) what I have done is confirmed all the deals in progress. You can discount this quantification by the huge amount of say 75% (thereby accounting for deals that don't get signed) and you still wind up with significant revenue. What I really do here is establish a worst case scenario. My worst case still establishes a revenue stream that will result is revenue increases that I think will increase share price significantly.
I'm not an insider. I don't have a crystal ball. I do what I can with all the informnation that is public. What I don't do is take a bit of this information and make it the only reason for an opinion, unless, of course, it is so significant that it's a massive red flag that shrouds everything else. I don't see that massive red flag here. WCD is manageable and low, gross margin is not out of whack. Both are very par for the course when understood in context.
These opinions will be disputed. That's what makes the markets work. I bought more Pyro this week. I felt the stock price was being manipulated on the ask side especially. The price got walked down on low volume. I think low volume reflects the fact that prospective investors are waiting for further validation of the technology (contracts). One possible strategy is to wait and buy at $1.50 or something like that, with a view to it going great guns at that point. I really don't know. Nobody does. Time will tell