The company will have worked out there figures and how many of there products they would like/need to sell initially this year and have increased there factory space to cater for this. I would imagine as in most manufacturing/supply leading times for units quoted will go out or come in depending on the demand and orders already recieved. No decent company would be daft enough to say they could deliver x amount a units at the same time if they were not geared up to do so and put the future of the business and new customer relationships at risk. We should just let the company get on with getting the orders in which is the important part. This a massive growing industry and acta have positioned themeselves well to gain a foothold and a portion of a huge pie that is going to be available as the demand increases year on year for these systems. Exciting times!
I would like to know how many back-up diesel generators the current 'major telecoms' customer is running in Africa. Since 'major' telecoms companies can have thousands of base stations in rural areas, I would be interested to know how many of the 'Acta Power' units can be made per month because at some point Acta are going to get an order for hundreds of Acta Power units to replace hundreds of diesel generators. If capacity already exists to manufacture in large numbers, then I'm not sure what there is to worry about because ultimately of course the customer will be paying for the product. ------- eg. Telecoms company with many rural base stations: 'In related news, China Mobile earlier this month said it is considering installing solar-powered base stations in Pakistan, where it operates a network serving 6.5 million subscribers. China Mobile noted that rolling power shortages are affecting nearly all areas of the South Asian country, where the operator has 4,500 base stations.' http://www.businessgreen.com/bg/news/1802444/chinas-huawei-supply-solar-powered-base-stations-bangladesh
RE: Orders and Cash
I said this the other day it is common that clients pay a good percentage up front for products on order and pay outstading balance on deilvery..What acta get paid up front might well be the cost of the materials and putting it together.. This is how often how i have found it in my line of work particularly when ordering specialist equipment that is of certain value.
See my post from other day.
Orders and Cash
I guess the idea is that as orders come in they are able to fund more orders out of the profits they make from the earlier orders. The biggest problem small companies face is when they scale up, if they don't have sufficient cash they go bust. This is probably one of the reasons that the share price is so volatile. The good news is that they have a great product.
Great News - BUT
But would someone please tell me where the cash is coming from to fund this growth ? I do have positive views on this business going forward ( also it was the first share I baught when I started out nearly 4 years ago) However I do know to supply the big orders they are expecting, will require more cash than I see on their balance sheet !
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