Bill there is visibility of a number of Defense contracts which could add to more than $100 MM per year for a period of few years, allowing the development of a technological platform from which industrial, medical and commercial applications could be developed. Casey forecasted some $5/share in the not too distant a future (some three to five year, there was no clarity on the timing), but I think this is quite optimistic, considering they do operate right now in the defense arena.
I would say you should watch the short position, it is increasing, and I have a "gut feeling" that this increase might be a hedging exercise by the holders of some 2 million warrants (exercise price at $12, thus fully hedgeable at these prices).
These warrants have about two years to run, and watch this, if the stock stays above $24 for 20 consecutive days, they are redeemable for peanuts vs a market value of then $12/share. This of course to force conversion and bring in cash is still required for operations until they turn positive cash flow. Somehow, my "gut feelings" is telling me that the price of $24/share will indeed be reached, maybe not on this move, but sometime during the second half of the year.
Zeev |
