Michael,
All are good questions; sorry I don't have good answers, only IMHO's (CAUTION: IMHO's can be hazardous to one's financial health!).
I'm not sure that start-up costs will be unbearably "substantial", i.e. shouldn't take a "GM-sized" factory to reach Year 1 projection of 4M pounds (on a capacity of 9M pounds). My guess is that the facility will not be much of a sight to behold; just another "concrete plant".
Also, I'm "assuming" (another DANGER sign) that management has built these start-up costs into projections. Take into consideration that the article I pulled #'s from (I think it was Windward Communications?) may not have the same credibilty as a BUY recommendation from Merrill Lynch, but it's all I've got to go on.
My reasons for being LONG on HARD for a LONG time (that's the plan, anyway): 1. NEW management 2. REAL product 3. GIGANTIC market 4. Investor Communications Co. - No, a company's investor relations firm is probably not one of the greatest reasons to buy a stock, but I've grown to trust Mark, Tom, Greg and the gang at ICC. I think ZMAX, GOAE & HARD have tremendous potential.
From its current market cap of about $4M, I see nothing but great things ahead. I hope I'm as smart as I sometimes think.
Have a good day, David |