I just found my file. It's sparse, but I really didn't put much time into it back in April '97. What I do see is a number of similar releases since mid-'96 for similar projects; Nuevo Energy, AC Environmental @ San Francisco Airport, etc. So, this is really no big deal, just a larger contract within their ongoing CRR ops; i.e., not glamorous historically. Ho hum market reaction to hyped anticipation.
As far as saying uncertainty on JV financing is a downside, I'd go a little further. Pardon, but TTRIF is an excellent example. TTRIF certainly has a more refined technology and the funding ball still hasn't ejected from the scrum on any of their projects. (Yes this is a cut on TT, but spare me any defense on their behalf. I've watched their $ shenanigans since they brought on CIBC. They shed more financiers than a 17 year old sheds condoms at Nor'lens Mardi Gras)(Sorry, sometimes I still like to see myself in print...) Anywho, funding is near the top of the chain of events defining success. It's followed by construction, operation, evolution, et. al. But, it's preceded by contracts, community acceptance and efficacy. Each of the 3 latter are very complex, and 'tho they may have mastered efficacy, I would expect many hiccups on acceptance and contracts.
IEI's simpler process and attendant lower cost help the hiccups as does the higher grade target waste stream. But the recent "bridge" financing for a $250K Amherstburg "upgrade", a $250K PP, and a promise of of a larger future deal just made the hiccups more audible.
Note that with the stock trading around 2 bits at the time, a PP with a discount of 20% to it would issue 1.25M shares. A 5% dilution on a (estimated) float of 25M. Dilution is OK if expansion is a reality. But, I'd like to see it above board. I don't believe any details have been made public on the deal, nor do I think they need to.
I'd like to see some uptrending earnings, specific to ROP, which could justify that division's expansion. I'd also suggest a secondary offering into at least the NASD small cap level. This would secure the upgraded listing desired for '97, increase credibility, and hopefully add a reputable body of longs to the shareholder base.
My apologies again on the length. I have much to find out. I will continue to try making brevity one of my strong points. The jury is still out for me on FA. I try to stay objective, so don't read any bash or hype into this. My general impressions are good, but TT and Trooper have seasoned my emotions. ;-) |
