Hi everyone! Hope you’re not losing too much sleep over UAV's SP stall. I have found this a good opportunity to purchase more shares in order to average down. So far so good!
Here is what I'd like to see for Q1 of 2018 (November - February):
Income statement: - Increase in revenues - I’m hoping to see $530,000 - $580,000. This would put us at a 8%-18% increase Q over Q. (I don’t predict a crazy amount of growth due to seasonality, I hope I’m wrong!)
- Maintain gross margin at 57% - hopefully COGS show up on the I/S. They won’t be audited so I don’t know if it will be included.
- Expenses up no more than 10% Q over Q - I see travelling and marketing getting higher as well as wages (they hired new staff + pay managers properly) - my target is $290,000 - $310,000.
- Ideally we'd have another profitable quarter - If this happens it will signal that UAV is making money even through the "slow season". In other words, imagine the potential in the busy season!!!
Balance Sheet: - Cash - $1,500,000 - $2,000,000 (unless they’ve finalized AIR?)
- Receivables - Up Q over Q
- Total assets Above $2,000,000
- Current ratio - +2
Of course I’m describing a favourable situation, but not an impossible one.
Considering UAV has already had a profitable quarter, the possibility of another is not out of reach. I would argue that my numbers might even be modest considering the infancy of UAV, but I'd rather not say anything till we see the financials. Even if Q1 is not profitable, I’d like to see a healthy balance sheet. Growth is absolutely wonderful, but a company must have solid financials to support it.
A word about share price: I see allot of people complaining, speculating, doubting when it comes down to the share price. I know there are many short termers/penny pumpers/day traders on the board... that means allot of bad information and poor due diligence. If you are discouraged about the share price being depressed, try to make a list of all the positive milestones UAV has reached. Compare UAV to other competitors in the market. Once you can do those thing you'll see that UAV is a gem in the making and will one day have the attention it deserves.
If you want the share price to be at $0.30, $0.50, a $1! Well, it will be one day if UAV keeps operating the way it is.
Patience will pay off.
Have a great day!
Any comments/constructive criticism is welcome :)