Hi all! Is it hot in here or is it just me?
I am amused that someone might choose not to invest in AFS because they don't have 15 mil in the bank, to buy 20 mil of product, to put it in a big box to send to Mexico. A: usually business doesn't happen that way, and B: the day the $20 mil contract is signed, the family pets will be lining up to buy the stock.
But seriously,
AFS has wisely chosen to stay out of the manufacturing business. I expect that the majority of this company's revenue will come from licensing the technology they have developed.
Many customers will choose to purchase the technology and manufacture the systems domestically, ie: Japan, Europe and Korea, which greatly reduces the upfront cost to AFS. (all that's left is air, hotel, and 50 multilingual lawyers..<g>)
In cases where the system hardware must be shipped to customer, ie: Mexico, financing is a concern, but the contracts are usually laid out in multiple phases, and monies are paid following equipment delivery. It all happens a little at a time. Juggling invoices and accounts receivables is to be expected when the big deals transpire, and everyone has done it, including MSFT, GM and IBM.
AFS is at a difficult stage. It is evolving from an R&D tech company with no money, to becoming a profitable business. Suddenly investors want the numbers to come together as if they (AFS) were on the TSE 300 index. Relax, patience will be rewarded.
This company has come very far on very little. I feel there is no question that Mr. Klopp and co have the business skills to finance future operations without excessively diluting shareholder equity.
Daewoo is advertising NG buses at their website.
dm.co.kr
regards, tj. |
