I recall a few years back when the US market entry seemed a long time away and we had all our eggs in China for SPS… IMO the current share price reflects how the opportunity in China has stalled… and has yet to price in the momentum that is building in the US.
with a very modest sales force, they are working on a pipeline of $50m in the US municipality segment. From a standing start in Jan, to actively pitching for $50m worth of sales is very encouraging.
while many were sucked into this stock due to promise of China’s 5 year plan that promised billions of funding into the water market there… we now know laws and regulations are worthless unless they are enforced.
so when we are presented with a similar scenario in the US where bills are passed promising billions of tax credits for those who invest in waste to energy projects, coupled with regulations requiring stricter waste management … I place a lot more faith in the US following through with real contracts and work..
they are working with JBS foods to build out a template for a $10m waste to energy project for one of their slatugher houses, which if successful will be a blueprint to roll out to the other 40 sites they have in the US.
is that a $400m opportunity over the next several years, with just one customer in the US?
the Ivory Coast has paid the bills for the past couple years, and they are due to announce substantial completion in the next couple weeks… with an extra $50m earned over the next couple years, and I hope a $10 recurring revenue contract.. which if they get that $10m BOOT signed as well in the next couple months… could see a baseline $25m in recurring revenue for the next 10-15 years (including what they already have now) at around 30% margin.
still a waiting game, but I can actually see the aircraft carrier turning and it’s going in the right direction.
goodluck all
FLC Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
