July 1, page-63

NANOSATELLITES WITH BENEFITS


Not so long ago, it was hard to imagine a world where every human would have a personal computer, and today we have supercomputing power at the palm of our hands, with wearable computing becoming the new standard. In just a few decades computer technology has radically transformed societies, whether by providing turn-by turn directions to pedestrians strolling city streets or by enabling anyone to send money via SMS to a remote African village. No one could have predicted in the 1980s how dramatically different our lives would be today thanks to computers.

Now that 30 year story is being replicated in space with potentially more dramatic transformation. The nascent commercial space industry is reliving the exact same pattern seen during the late 20th century computer revolution. Nanosatellites and companies like NanoSatisfi, NanoRacks and Skybox are transforming space access. Nanosatellites are bringing space into everyday life.

Imagine:- * Accurate models about climate change, drought and other natural disasters like
earthquakes or tsunamis.
* Detecting smuggling and trafficking
* Knowing exactly how many endangered animals are on land and in the ocean and will see
in real time who is illegally fishing in protected waters.
*Able to warn ships in real time of piracy or collisions - events that still happen
on regular basis
*Even predicting ebola and malaria outbreaks

In the end no one can predict how individual access to satellites will transform our lives. Accordingly those that rubbished the numerous MOU's that SAS have presented, with respect have missed the point in my opinion. The MOU's clearly show sophisticated investors, banks and potential directors exactly how vast and diverse the interest in the services provided by the nanosatellites really are. Build the right product and the profits will come.

Unfortunately many companies prior to SAS have failed in their bid to commercialise satellites may it be funding, technology or commercial viability. Elon Musk's Space X will require billions in profit to be commercially viable and is a far greater risk in my eyes than SAS funding woes. Start up companies are renowned for failure. The only comfort is you can only lose what funds you can afford to put in, alternatively however get the product right and they have the potential to be very lucrative.



Intrinsic Share Price = Profit (NET)
-------------- * P/E Ratio (traditionally 15 for companies listed on ASX)
No. of Shares.


(Eg. 1). Share Price = $100 Million
-------------- * 15 = 37.5 cents
4 Billion

Those with sharp eyes will have noticed I have used 4 Billion shares not 2 billion as presently listed on ASX in order to anticipate a capital raise and possible dilution of the current shares. I hopefully have exaggerated this point and any less dilution will have a positive effect on the share price.


(Eg. 2). Share Price = $600 Million
--------------- * 15 = $2.25
4 Billion


The above are currently all fanciful simplistic figures which will not be realised unless SAS obtains the funding to complete this project. I am of the opinion that Meir will accomplish this task but he will obviously face many more unforeseen obstacles as we progress. I don't know many boys who didn't wish to be a jet fighter pilot but Meir accomplished it. Meir could have semi-retired and flown commercial jets for $300k a year but since 2006 (13 years) he has been designing, building and operating nano satellites. I don't believe he is a criminal mastermind wanting to steal our money. I have not contacted Meir or know the man but he appears driven to succeed in my eyes. The share price will falter during this turbulent phase but you will quickly forget if we make it to the Shit Yeah phase and realising the above profits. Persistence beats resistance. Go Meir!