RE: Good news29 Jan 2019 09:40
Hexy it depends how long your willing to hold and how long you've already held
For a trader, there's no news in that RNS that will cause a spike, therefore since the bid is over 1.3p most of them are going to get out, also NOMAD has not yet been announced but it does state that it will be updated before the week is out
For a long term holder, although you really need the full financial update, it gives confidence that
1. Shareholders and BOD interests aligned, the fact they've loaned large sums of their own money to keep the company operating and avoid dilution
2. Deferred/Delayed Revenue, if you've held a long time you'll know that two significant sources of revenue we're delayed in 2018, the watchlock (backed by $250,000 of orders) and secondly the remaining 900K of the north african project (with the potential of a further 2.5m in 2019) - the Watchlock will hopefully be released shortly and the NA order has progress with part of the sum being now transferred (I am still unclear whether it is all of the sum or part of it, regardless cash is on the way) - lets be conservative and estimate 50% of the NA order, and the full watchlock order comes in Q1 2019 - that's a starting point of (450K for NA and 250K for WL) 700K of revenue
3. SAS was up to 2m, although 200K was from the NA contract, so lets assume 1.8m as a baseline for 2019 that's 450K per Q at 80%+ Margin, that now puts Q1 at around 1.15K
Did anyone notice that the electric motorbike client was named alongside CropX and Bosch? Why? So the BOD clearly think this new Electric Bike client is going to be a 'Major Partner', that's now three big names (I think Contguard and Shiptek could join that level in 2019 but we will see) - I have my idea on who I think the Electric Bike client is and if so, it will be possibly the best reference in the EV market, no wonder they are anticipating increased opportunities from having these guys on board
Also, some may take it as a negative, but they said the above three clients will only contribute a small amount short term, that means we are making between 6m-7m per annum WITHOUT these deals hitting maturity
Today's reaction is a typical case of a short term mindset, H1 2017 we had zero clients of this calibre, now we have three. In another years time or two, if this three becomes, 5 or 6, then we will be looking at a highly lucrative business
The long term vision here is very different from the short term, but if your looking for a quick buck, then you may be disappointed
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