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Technology Stocks : Energy Conversion Devices

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To: Futurist who wrote (2290)9/14/1998 10:23:00 PM
From: Michael Stavy  Read Replies (1) of 8393
 
Futurist

I will really believe that ECD has turned the corner when the bottom line blossoms. I increase my belief when ECD has a positive gross margin from product and service sales.

With a positive gross margin more research can be financed by ECD itself without selling new shares or having disadvantageous royalty agreements. If the revenue from royalties equals the current expenditures on research, ECD's research activity would be self-financed.

If the bottom line turned positive, ECD could finance production plants from its current earnings and long term debt. If the bottom line turned positive the P/E ratio would have significance.

Michael
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