RE: Valuation19 Feb 2021 09:55
Firstly I'd like to commend the regular contributors to this board for their balanced and informative contributions. It's a pleasant change to explore the discussion on PHE without the de/ramping, sniping and general content free nastiness that, unfortunately, is typical of so many BBS.
Notwithstanding, I have one question/concern........competition! Looking at the numbers that have been discussed recently about volumes of systems installed and the license fees generated they appear to assume no competition. Given the significant benefits to society now and, more importantly, the future of the DMG process surely other companies are developing similar technology with the same objectives - waste to green energy? Also do not lose sight of the Chinese as they will readily steal IP and with, heavily subsidised manufacturing, flood the market with low cost product. Look what they have done to the solar panel market!
With regards to income, all valuations are assuming a steady license fee of circa 500k p.a. Is that reasonable for volume and/or with competitive market pressure? I don't think so! If a customer is in the market for 100 units, for example, they will not be paying 500k per unit?
Despite my concerns over valuation and the inevitable market pressure, I am heavily invested in PHE primarily because of the dual benefits - green energy and plastic destruction.