Reviewed the financials of 3rd qtr March...
and spoke to the IR firm (Mavis) today. As I am new here some of what I say may be old news, but its better than no news.
The financials are not bad. As was stated earlier, they are in need of financing, are working on it now (possibly in the form of collateralized debt rather than equity), and will publish info when it is complete. Going forward the ongoing business should generate reasonable cash flow, and the way they plan to license the equipment puts most of the capital requirements on the lessee. Also, it does not appear they will incur large sales or marketing expense to ramp up revenue.
The critical element to their success is in the technology, which I do not have the expertise to evaluate. The description of the wide array of uses sounds great in theory. Mavis mentioned they had a significant interest from the rubber companies in past years, but were reluctant to partner at the risk of giving away the technology. Now that the patents are in place, they will actively follow up on these potential sources of revenue.
To try to put the stock price into perspective, if they can earn a net income after tax of $1M, lets say based on sales of $10M, using 40M shares outstanding, they are trading at a Price/earnings of 3x. Given a conservative market multiple of 10x, they would be trading at 22 cents. Please note when I throw out these earnings and revenue numbers, I have no clue as to what a real # would be, and Mavis was shy about making projections (which I respect, along with full disclosure of the financials).
If anyone can add anything objective on the revenue or earnings potential, please do. It seems as though the benefit of this method is the flexibility in application which include grinding of customer specific mixes and the wide variety of other related uses.
jmt
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