TAP. Question about contracts?
In the 1/29/99 news release the company said:
"As of January 15, 1999, the company is negotiating with new accounts nationally that have a need for the SWIM/TRIM software and whose requirements are in excess of $20 million. Included in the new accounts is a major Water Works Utility in California. The company expects to receive its first order for SWIM and its derivative products within the next 4 weeks."
As the last poster stated, 4 weeks is up. Is this the news you expected yesterday, or are they close to releasing this news? I agree that this is a GREAT long term investment. I also agree that we need exposure, which the company is doing an excellent job of getting as yesterdays news laid out.
Next to releasing financial information, announcing contracts is paramount in the world of BB's because it gives investors something to determine value with. Especially with the few amount of shares outstanding. For every $10M in profits generated from SWIM, this company will show .65 earnings per share. 10M divided by 15.7M shares outstanding is .65. Times a conservative PE of 20 is a share value of $13. Or for every $1M in profits, a share value of $1.30. Considering we are at .42 to .45, it wont take much of a contract to show us a higher value. Correct me if I am wrong, but SWIM could easily generate $10M in profits. Their costs have got to be extremely low giving them a very high profit margin for each sale. IMO.
Would appreciate hearing opinions on this theory.
Thanks,
Bob |
