Mark,
I love your analysis!! (Just don't understand all of the mumbo-jumbo... :0) Anyway, on a fundamentals approach, we see the company reporting purchase orders, deposits being made, and delivery of two key components this week. (Monday at the latest).
Additionally, I just spoke with Bo O'Brien this morning and he stated that M&K Engineering, through computer modeling, has determined that each processor's capacity could be upped to 600-800+ for a minimal cost of approx $50,000. This means the company's profit margins would go way up if they decide to price the units based on capacity. (ie.. 400 gal/hr= $1.5 million thus 800 gal/hr unit should sell for approx $3 million) All of this for only $50,000 more in manufacturing cost!! Nothing is confirmed at the moment, but I have to believe that Bill will price them in this manner. He knows what he has. I'm betting on that belief and my own personal observations as they continue to reassemble Unit #1 for operations later this month.
Fundamentally speaking, this company is showing renewed strength and has been for some time. Now all that is required is a successful commencement of operations to firm up the markets belief in the technology. After that, it will be a whole different ball game as the company becomes earnings driven.
Regards,
Ron |
