This would be really big stuff for several reaons: 1) it would cover ALL the costs of the company, and basically allow them to advance the technology for other commercial purposes basically for free. 2) they would make some money on this business - even at a 10% net after-tax rate that would be around $4 million, or roughly .60c/share 3) it would "bulk" up the company from a revenue point of view, which would make people more comfortable paying more for the shares (at 5 times just this revenue, that would be $200 million or roughly $30 share) 4) it would make all their other revenue that much more profitable, as their expenses would be covered from the government work, 5) it should accelerate their getting other commercial ventures going as they will have increased visibility and credibility.
This is a VERY LARGE and important development for the company. It is no wonder that the management was giddy on the conference call. This is a changed company. One that has turned the corner from a "I hope we are going to make it" to " I know we are going to make it, I just don't know how big". Think of the jump that this $40 million would be for them. Their biggest award to date is about $4 million, this is 10X that. Thats the type of progress we all want. And the nice part is, this is only the beginning. With these small companies, getting over the hump is the biggest hurdle. We are over that hump, and with a little analyst coverage, we will be off to the races. I think from here on out the hardest thing to not sell as it runs.
good luck to all. |
