Michael,
Some answers, to the best of my knowledge:
<<Does year 1 refer to a time beginning about 60 days from now as mentioned earlier in this thread when the plant begins functioning?>> Year 1 = fiscal year from June97 - May98.
<<Does this also mean that the company is currently not producing any Novacrete?>> Correct. Plant should be completed by early June, with production to begin shortly thereafter. Evidently, prior management had the technology but resorted to hyping vs. actually manufacturing/selling. Opening of manufacturing facility represents fresh start. On one hand, it's easy to say that this fresh start is from "Ground Zero". However, we do have a few inherent advantages, including what sounds like superior technology & A-1 management. Although previous announcements - $200K revenue from a licensing agreement, $900K licensing agreement w/Phillipine co., $4M profit from joint venture in Greece - are not valid (per Greg @ ICC - "Throw all of the old press releases in the trash can"), I would think that these acqaintances are still in place. With new management & pre-existing product awareness, thoughts/hopes are that we'll be able to "hit the ground running".
<<Are they still planning to generate additional revenue by licensing the "recipe" to other companies?>> Although the marketing plan will probably change under new management, it would seem that the company would continue to utilize some sort of licensing agreement. IMHO, revenue projections contain all revenue sources, whether product sales or licenses.
More FUN WITH #'s (from a conservative? standpoint): From Year 1 projections on report posted on yesterday's report - Revenues: $16M Assume $10M Net margin: 25% Assume 10% EPS (8.6M shares): $.465 $.116 With a EPS of $.116 and a PE of 20, stock price = $2.32 (a 4+ bagger in one year).
Note: If company shows that it has anywhere near the potential to increase revenue to $250M by year 5 (as stated in report), market should value stock at significantly greater than PE of 20 (maybe 40, 50, 60?)
Hoping the best is yet to come, David |