Post by
zenvesting on Jun 16, 2015 10:42am
EUO history of under delivering creating an opportunity?
This company's long history ov over promising and under delivering has obviously caused the market to view their last quarter's results with some prejudice, but are those results a sign that the time has finally arrived for EUO to begin delivering consistant results?
At these prices, I was willing to bet yes, this company seams to have begun delivering good results on the back of their recurring chemical sales. Looking at last quarter's results, if you back out the $200K grant from the Isreali government, they still earned nearly $350k in the quarter. If you take that $0.012 and annualize it assuming no growth, that $350k in quarterly earnings results in $0.012 annual EPS, giving the company a P/E of 12 going forward. If you take the 21% sales growth in US dollars, they have a PEG of 0.6 @ $0.15.
I think there's value here at these prices and I think there's a good chance a patient investor taking a long-term position here might get to see some of the long-promised "big national contracts" fuinally get finalized in the coming year or two.
I am here for the long-term.
Comment by
Playa2012 on Jun 16, 2015 10:47am
Good post Zen - the EUO AGM is on June 25. I will try to attend as I am fairly close to downtown T.O. Anyone attending should take that opportune time to pose go-forward contract questions to management to guage their responses.
Comment by
tsawboss on Jun 16, 2015 5:39pm
The last paragraph on page 21 of the last financial report will clear up some of your confusion on how the grants are recognized and to be repaid through royalties. You could also familiarize yourself with the revenue breakdown on page 14.
Comment by
tsawboss on Jun 17, 2015 9:14am
They already deducted it from the bottom line, but if you feel the need to do it twice, so be it. Just don't misinform others. Other expense(income) (200,174)