Syncrude, some very valid points and was some of the concerns that I looked into and this is what I came up with.
A lot of the order back log will be full filled early in 1999, giving the company the capital they need. In the mean time there would likely be some small private placement money raised. The company has very strong support from the Abra Group. I expect the 5M loan will be converted to a debenture or equity
When the Abra Group was brought in, the fellow involved had a Montreal shell at the time. The long term plan here would be to go to NASDAQ, note I am just saying plan, this is where a tech company like this belongs.
Capital was my main concern at first look also, but I am satisfied after discussions with their CFO and large shareholders.
For public companies, a main competitor would be L3 Communications on New York. I am fortunate that one of Canada's largest satellite companies is based in my old home town. Comdev Int. CDV on TSE, some of my old school buddies work there, so I had some help on my DD on this aspect..& on the technolgy issue
They are now hot on this company, they say this deal with the US defense dept. is huge. They could not tell me what is up because they could loose their jobs if this kind of info got out, but they say it is Wall Street journal, Forbes front page stuff, when it comes public. This is one of the reasons I am so bullish, I think their technology is leading edge and after several more defense orders are announced it will become more obvious what is happening here.
This is about all I can say, the other point you have to keep in mind is the defense dept. orders are a new customer, coming on top of already growing orders and backlog, I think this really increase the odds of sales and orders continuing on a growing trend. Also these new orders are the type with a lot higher profit margins.
I think this company is going to do very well in 1999 and did not even mention their new software product, beta version should be out very soon and this has potential for some very positive news.
Ron |
