Very nice year end results Mercury! You're a young company on the right track and I'm very impressed with the progress you're making. I'm definitely looking forward as well to first quarter results which should be great, not to mention the addition of further major contracts.
Strictly i.m.h.o., I see one of two scenarios for Mercury.
Scenario One:
Mercury has an outstanding year with MANY new major contracts in hand. The agreements with British Airways and DHL have provided the credibility for Merucry that will open the doors to many other major air carriers. That Mercury could secure these two companies in the first place is a testament to their products and services! While I'm thrilled with British Airways and DHL coming on board with Mercury, I think the far bigger pay off will be the future contracts that will follow with other Tier 1 air carriers who will now take an active interest. British Airways and DHL have got the ball rolling and will provide a "comfort level" for other air carriers that will now come calling. In this regard, I think this is just the beginning of a series of major contracts for Mercury.
Scenario Two:
Mercury is bought out. Take industry giant Sabre for example, which is much bigger company than Mercury. Mercury beat out Sabre for the DHL contract with what was simply a better product than what Sabre could offer. (Personally, I think this fact is the most important and telling information of the past year, and highlights the bright future MRY has!) No doubt Sabre has taken notice and realizes they have "a problem". They have two options really. Do the R&D and develop the product themselves which is a lot of $$$, effort and lost time as they eventually bringing their new product to market, or simply buy the smaller company (while it is still small!), thus eliminating the competition and gaining the benefit of their advanced technology.
Whichever scenario it is, I picture MRY's shareprice will be much much higher than it is presently. At these prices, MRY represents the best bargain I currently know in the market. I fully expect those who are holding this company to be very handsomely rewarded!
Regards,
Kevin |
