Lighthouse, the NTA and price-to-book ratio are almost completely irrelevant for a company like CFCL.
What is a concern is the cash burn and the cash holding. By my reckoning they have enough to last till about the end of 2012 (I'd previously estimated mid-2012, but that was assuming no income and neglecting inventory buildup).
So by that point they need the EON orders to start coming through (maybe the first 1000 of the 100,000 to come before 2018), further sales to EWE (who will hopefully have 18 months experience with 50+ integrated mCHP boiler deployments by then), or something substantial to come from somewhere else (GDF, Paloma, the US licensing deal).
My other concern is that I want CFCL to have enough cash not just to survive but to push their R&D along.
I certainly agree the share price unlikely to do anything dramatic in the immediate future, however, and "short term sell" is reasonable enough given the downward momentum.
CFU Price at posting:
12.7¢ Sentiment: LT Buy Disclosure: Held
