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Technology Stocks : Aqua Dyne Inc -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (3)	8/2/2002 11:38:36 AM
From: water-world-man	Respond to of 18

Good morning Wade, No question, Aqua Dyne isn't rich with cash. Before becoming a public company, their purpose was R&D, which we all know can be expensive. At this time, I am aware of no sales, but I know the development has progressed to where the system is ready for market. Personally, I'm glad they waited to become a public company until they had a product nearing development completion. Far too many public companies continue R&D for year after year while investors suffer and hope that someday the company will bring a product to market. I believe there's great interest in the JetWater system and I'd be very surprised to here there weren't contract talks going on. Today, we're 11 weeks into the public life of Aqua Dyne. I'm confident the next 11 weeks will give us a greater understanding of the capabilities of the system and reveal some of the interest from the commercial market. And to answer your last question, unfortunately, I do not know any details regarding how the promoters determined the stock price.

To: Wade who wrote (3)	8/5/2002 11:19:15 AM
From: water-world-man	Read Replies (1) \| Respond to of 18

Did you see AQDY's announcement? As I've said, this company looks HUGE! Check the news that just came out about AQDY: biz.yahoo.com These two sentences are key and point to the exceptional profit potential of the company in the near and longer term: "Aqua Dyne, Inc. estimates that on this one unit it will realize net profits of in excess of $USD 6,000,000 over the next 10 years. It is management's goal to have approximately 20 units under contract over the next 12 months." If AQDY has 20 units under contract in the next 12 months and the figure of $6 million dollars net profit on each unit over the next 10 years is the average, that would be $120 million net profit on the first 20 units over a 10 year period, or roughly $12 million per year for 10 years. Will this 12 month period be the end of AQDY's ability to sign contracts? As the word gets out and manufacturing capabilities are refined, negotiations are streamlined, etc, wouldn't it be more likely that the first 12 months will be slower than the following 12 months, etc? But for the moment, let's assume the second 12 month period results in the same number of contracts signed in the first 12 months (although it could be double this number or more). So at the end of the second 12 month period, there are 40 units under contract. Assuming the same rough profitability for each unit, That's 40 units times $600K each year, which equals $24 million net profits per year after the deployment of the first 40 units. Imagine what happens in the following year, and the next, and the next, etc... And remember, this company has less than 10 million shares outstanding (even considering some further minor dilution occurs, since we're currently sitting with less than 7 million shares outstanding). For reasons of simplicity, let's assume AQDY earns $2 per share the year following the deployment of the first 40 units, and all appearances point toward the company continuing to grow its earnings year after year. It's likely the market will reward such a company a high price earnings multiple. But we won't get extravagant and will assume a modest PE of 30. 30 times $2 would equal a stock price of $60 per share, and here we sit in the $3-$4 range. Now you see why I believe AQDY has enormous growth potential! And what happens if the company signs 40 contracts per year instead of 20, or if profitability is greater than $50K per unit per month, or if the market sees the company potential as being so great that it rewards it with a price earnings multiple of 50 instead of 30, etc... Aqua Dyne has a novel product that is gaining interest rapidly and it appears that the company is poised to become highly profitable. So is the current range cheap? I think so...