DMC 0.00% 30.0¢ design milk co limited

profit may exceed market cap

  1. 1,545 Posts.
    Looking very good today up 15% on a day where the market is down.

    Current market cap: $47 million

    The company has reported a deal for 10 million ecobulbs at $5 each or $50 million dollars. I rang the comapany about two months ago and found that the ecobulbs only cost INT $2 each there for this deal represents $30 million tobe paid out over the next 12 months.

    While I was on the phone (cnnot remember if it was Steve or Jeff I was talking to) I asked if the company had forecast selling more or less bulbs.

    I think he misinterperated my question into something like "what volume of bulbs will exist in future sales?" and go some answer about how for legality puposes he could not tell however there was enourmous potential in the bulbs. Basically it was hinted that they were in the process negotiating further deals. Interesting.
    Another deal now of the previous magnitute would provide profit for the following year greater than the current market cap.

    It is also worth remembering that INT has the rights to sell ecobulbs because it bought Advanced Energy Ltd (AEL).
    How did it purchase AEL? For two tranches of 100 million options exercisable at 12.5 cents exercisable and owing that sales targets of 10 million bulbs per tranche are met.

    Minimal expectation of a at least another 10 million bulb sales as well and the share price reaching 12.5 easily otherwise AEL handed itself over for free.

    IMO EBITover the next 12 months should exceed the current market cap easily if not be multiples of it. Is it possible for a company to have a PE ratio of less than one?? Probably also worth mentioning that the company has recorded signoficany losses over the last few years so has some tax benefits.

    IMO the potential held by both the ecobulb and the smart meters provide investors with both growth and value that will trigger a rerating if not now soon.
 
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