When Cal-dive, the biggest in the world and one of NMS's nominal competitors, recognises that it is more profitable for them to use NEPSYS on its own hard-won projects, it is a terrific sign.
When they back-up with repeat jobs, it is really a water-shed moment (no pun intended, although NEPSYS means Cal-dive doesn't have to use expensive Hypobaric "water-sheds" for so many jobs) for NMS with profound implications.
For one thing, Cal-dive will see the profit advantage for every job where it is possible to use it, because it is so much cheaper - money for jam.
Cal-dive will then inevitably start to factor in the cost-impact of the availability (or unavailability) of this technology into jobs they have already won but not started and those they tender for in future, where there is any potential NEPSYS application involved.
- And so will the oil and gas majors who want this type of work done when they see the big boy using it again and again.
At the same time, potential acquisition targets will be filling NMS dance card if there is any space next to the jobs NMS will also win in their own right.
A few of us have been toying with the odd sp prediction lately and seeing $2 as pretty reasonable by the end of the calendar year or within 12 months, but honestly, i'm starting to wonder if we are being just too conservative with that outlook.
When NMS was a few blokes in a shed with a brilliant sytem but who couldn't manage one decent size contract, it reached $1.50. The new structure is huge by comparison now and is effectively beginning to leverage the premier under-water welding technology in the market-place. So superior is it, that the 600-pound gorilla neighbour in their market comes and hires them to access it, repeatedly.
After already making a quid on this, it is hard not to seriously question if portfolio diversification is all it's cracked up to be.
Looking a year ahead, the one smokey in all this is that its hard to know if cal-dive or someone else might offer HBSWRX his $3 early-retirement before the real mega-bucks start to flow.
NMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
