Euo great risk reward at .07 could have big upside ! -
From Ceo Interview Jan 2015
The recurring component is my objective for 2015, 2016. We’ve been doing this for a while, so we’re well advanced in numerous markets. We expect to acquire more fuel-marking contracts next year, and we might even get a couple this year, depending on what happens. So adding to the recurring revenue line is the key objective, which is to say, bring forward more fuel marking contracts. Of course, every time we get a fuel-marking contract, it has an implication to Xenemetrix, because they build the analyzers to support the contract. Once we have a program up and running we are in the business of selling our liquid chemical marker into the program, which is where the margin is and where our recurring revenue comes from — razor and razor blades. To make a long story short, I think that there is a reasonable expectation that at this time next year, the contracted fuel marking business for us will produce, at least on a pro forma basis, a top line somewhere around $20 million or beyond. At $20 million, we can produce roughly $6 million of EBITDA. Currently, Eurocontrol has a market capitalization of about $6 million. So I don’t mind holding on to the $6 million number as long as I can change that from being the market cap to being the pro forma EBITDA. And then I think the market might pay me as much as 10 times EBITDA, which means that the stock, if that were to all happen, could appreciate 10 times from current prices. Hence why I’m a buyer of Eurocontrol stock. TWST: Thank you. (MES) BRUCE ROWLANDS Chairman & CEO Eurocontrol Technics Group Inc. 401 Bay St. Suite 2828 Toronto, ON M5H2Y4 Canada (416) 361-2808 |
