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Microcap & Penny Stocks : EuroControl (EUO.V) -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (12)	6/26/2013 7:00:09 PM
From: kidl	Read Replies (1) \| Respond to of 553

June 16/13 Ubeka on Ghana deal As expected, Ubeka issued one of their “research” reports yesterday. While they certainly don’t deserve the term “research” as Ubeka simply disseminates information provided by their clients, the blurb below does provide two numbers which were not provided in the company NR. Their top line revenue estimate of ~$7 Mil signals that the Albania contract might be worth $1.5 to $2 Mil per year (using EUO’s 2012 revenue as a base) which makes my WAG of $12 Mil look rather silly :-( Their (company induced) estimate of a positive $1 Mil “earnings run rate” could make sense but should really be called “free cash flow run rate” as EUO was essentially cash flow neutral last year. $2 Mil in additional revenue given their very low COG / high GOP should produce $1 Mil in free cash flow UNLESS they find more ingenious ways to increase overhead expenses as in already rather “generous” salaries and consulting contracts. Using the Ubeka numbers, the current SP of $0.06 and 90 Mil o/s shares, EUO remains seriously undervalued compared to its peers. I am not quite sure which industry sector to use as a comparable, so I used two: Technology and Services. (Ref: http://csimarket.com/screening/index.php?s=ps&pageS=3&fis= ) EUO’s Price to Free Cash Flow Multiple is 5.4 compared to 13.6 for Technology and 16.8 for Services which equates to an average fair value of ~$0.18 / share EUO’s Price to Sales Ratio based sales of $7 Mil is 0.8 compared to 2.48 for Technology and 1.99 for Services which equates to an average fair value of ~$0.17 / share Reaching fair market value, let alone the typical 50 to 100% premium micro caps with high growth potential usually enjoy, would obviously require a tad more of an effort on the IR / PR side than just hiring a tout sheet ... Ubika Research Update on Albania Contract Win for Industrial Technology Company Eurocontrol Technics Group Inc newsfile Toronto, Ontario--(Newsfile Corp. - June 14, 2013) - Ubika Research has released a research bulletin on 2012 year end results and recent contract wins released by Eurocontrol Technics Group Inc (TSXV: EUO) (CVE: EUO). The research bulletin is titled "Albania win validates marker program, leads to positive earnings & likely domino effect in other markets". Ubika Research lead analyst Vishy Karamadam states "With $1.6 Million in cash, over $7M in estimated top line revenue, a GFI high margin recurring revenue stream and now a positive earnings run rate of over $1MM, the current market cap of $2.8 million makes a compelling opportunity for investors hunting for earnings positive growth stories." You can get the research bulletin on SmallCapPower.com: http://www.smallcappower.com/reports/files/euo-research-bulletin-14-june-2013. Eurocontrol Technics Group Inc (TSXV: EUO) (CVE: EUO) is a leader in authentication, verification and certification technologies. It has a leading presence in the energy industry with its industry leading petroleum fuel marker program that is now being successfully used in several countries. To view the initiation research report, research bulletins, analyst commentaries and CEO video interview please visit: http://www.smallcappower.com/companies/products/eurocontrol-technics-group-inc. About Ubika Research Ubika is an investment research and capital market services firm based in Toronto and Vancouver with a proven track record of identifying and launching coverage of high potential small cap stocks at an early stage, thus offering timely market insights. Its specialty is small-cap companies with a market capitalization of <$1 billion. Disclosure Ubika Research has received compensation from Eurocontrol Technics Group Inc to provide analyst research coverage Except for the historical information presented herein, matters discussed in this document contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Ubika Research and www.smallcappower.com (are both divisions of Ubika Corporation), and are not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this report. For making specific investment decisions, readers should seek their own advice. For full disclosure please visit: http://www.smallcappower.com/pages/small-cap-power-disclosure. For additional information contact: Vishy Karamadam, Managing Director Email: vishy@ubikacorp.com Phone: 647-352-0666