Eurocontrol Technics Ord EUCTF

Old but worth the read

[koast2]

EURO has just sold their division (Global Fluids

International, "GFI") fuel marking technology (to prevent

illicit marketing of fuels) to Swiss SICPA Big Whale, which

has an annual turnover

of 1.4 billion USD , 3,000

employees and works with about 200 governments

worldwide. SICPA has been in the security business since

1927. SICPA is the leading global provider of security inks

for printing currency as the dollar, euro and yen, designs

passp

orts and government bonds and solutions for

authenticating documents and sensitive products with

market value. Its Security Solutions division currently

provides over 40 billion US $ per year for the collection of

excise tax and VAT and ensures traceabilit

y of over $ 70

billion on tobacco, beverage and pharmaceutical products

in the world whole. It is simply amazing that this giant

company is interested in acquiring technology owned by a

Canadian public company with low capitalization. Political

relations S

ICPA go far beyond what any other company

listed in Venture can dream. See links "International

Advisory Board"

-

CEO1 SICPA SICPA CEO, Atl

antic

Council on SICPA GFI CEO I

sraliennen Presidential

Conference.

EURO CAD receives 16 million upfront payment for

the

sale of GFI and its shares are currently trading at 16.5c x

89 million = CAD 14.68 million market capitalization with

no debt on its books. EUO also, and this is where it gets

more interesting, receives a royalty of 5% (with a minimum

of 1.5 million C

AD per year) on all contracts that get

SICPA for fuel marking programs they sell to governments

worldwide. This includes both the logistics for the program

and the actual synthetic markers used. oil / fuel marking

programs is a market of 1 billion globally

(as estimated by

the CEO Bruce Rowlands). GFI has only one serious

competitor is Authentix the United States. GFI is the only

certified fuel marker ISO market and

Mr.

Rowlands has

mentioned several times in public appearances that

Authentix tech is "horse

and buggy" in comparison with

GFI's. The only reason EUO was never able to compete

with Authentix on a global scale is due to its very limited

resources and size (EUO got only 3 contracts: Albania,

Uganda and Tanzania and lost many bids because of

bribes

that Authentix could meet with representatives of

government that the EUO could not do.) by contract, EUO

also provide Xenemetrix spectrometers on an exclusive

basis SICPA for their fuel integrity programs, they are

required to analyze fuel samples taken t

o check if the fuel

has not been altered or illegally smuggled or otherwise.

Xenemetrix is a

controlled subsidiary 100% Euroc

ontrol,

so will another layer of extra income for EUO (with gross

margins of around 40

-

50%).

Suppose SICPA receives only 10% of the

world market or

USD 100 million / year, which is approximately CAD 140

million, 5% of it going to EUO = CAD 7 million / 89 million

shares = 7.9c Income EUO. Therefore, what is the value

of EUO? I do not know, but certainly not 16.5c! The

market is out to

lunch on EUO. As the market is declining,

I would say a price

-

earnings ratio (PE) 5 = 40 c. What is

even better, if the EUO plan is to return it in the form of

dividends, which the CEO EUO announced as their

intention, if we apply a conservative return of

8%, now is

EUO = 99c. Not bad for a share of 16c. As I said, with a

market penetration of only 10% for the new Global Fluids

International division (GFI) SICPA, a very high yield of 8%,

which in a market in negative interest rates could be much

low, which

leaves out any value for the division and for

Xeneme

tr

ix XwinSys. Incidentally, there is a call for

current offers (ec.europa.eu) to provide 28 states

throughout the EU a new fuel marker that I believe could

easily be worth about 150

-

200 million to be gra

nted

before the end of 2016. the size of this contract alone has

tremendous potential for obvious EUO SICPA if this

happens to be awarded. Let's say 150 million 5% = a fee

of around 12c CAD alone for EUO which would EUO on

the way of an assessment of more

than CAD $ 1 per

share.

XwinSys (fully automated metrology system for industry

semiconductor that combines image processing

technology 2D and 3D with the ED

-

XRF technology

Xenemetrix) is a unique manufacturing company, it is

much more advanced than that ca

n be read in their last

management report or even that their last presentation in

January would have us believe.

Check what Robert

McWhirter to say about it here2: I suspect Mr. Rowlands

will be looking for a similar type of operation with SICPA

for succe

ss, ie: initial payment + royalty streams in return

from the sale of technology. I can only dream that the

stock would be with 2 large flow

s

of secure royalties

supporting both annual dividends may be higher than the

current market capitalization.

To summa

rize, I believe that EURO is the best opportunity

risk / reward on the Canadian market at the moment

because it was trading at 16.5c, its valuation is supported

by its current cash value of approximately 17c per share

and NPV (NPV) of 22

-

24c factoring the

minimum payment

of future royalties and having a safe flow scenario of

potential royalties could easily exceed its current market

capitalization. Potential deployments other commercial

applications of their Xenemetrix spectrometers such as

Petromarine is n

ot even considered here.

https://www.eurocontrol.ca/images/reports_and_filings/independent_reports/2016/ESpace_Microcaps_Napoleon's_Blog_Feb25_16.pdf

[frs1960]

Not enough people understand that or something sounds perhaps too optimistic or wrong. When will we receive any dividen? GLTA

[koast2]

Was reposting not to point out the divedend , but rather that people seem to forget that we are currently trading below cash value . That and the fact that any whiff of a major contract by Sicpa would result in explosive stock price appreciation . Wonder if the following could be in our future as the technology is far superior to what was there before (    https://www.siliconinvestor.com

[endeavour]

the 650,000 shares on the ask at 0.155 is spooking people into selling below this. Someone wants to dump a whackload of shares. Why?  Until this seller is gone and we continue to have zero news for months on end, the share price will continue to go lower. Sub 10 cents is a distinct possibility unless we hear something from them before year end. Been waiting a long time for something to happen

[newdaydawning]

Sub 10 cents is a dream, perhaps a Christmas gift powered by tax loss selling. All in - if we get there!!  

[xsnrg]

Me too!  Nothing would make me happier than a Christmas buying spree at 9 cents on EUO...not sure if existing shareholders will like that though

[Raptorman2013]

the best strategy is to do what bruce and EUO is doing themselves... pick up a little at a time because on one hand you don't want to pick up a lot in the event that it might go down. On the other hand, it might break to the upside and you missed an opportunity. One thing for sure, the MMs know that retail investors get rattled when they see what is happening right now. Chinese water torture

[snootchybootchy]

That's what I'm doing.  Picked up another 22,000 shares today.  If prices are still down here in January, I will pick up more for my TFSA account.