When SMN receives FAA approval for the application of CVM sensors & has signed contracts, the limiting factors will be the number of locations where experienced personnel can install sensors, the time when aircraft would normally be scheduled for maintenance checks & the time it takes for each installation.
I believe the profit margin for each installation should be around 80% & allowing for discounts, the profit per installation may be, as a guess $80,000.
If there were 2 installations per day for 250 days = 500 for a year @ $80,000 = $40,000,000 profit . Assume AEM adds $10,000,000 profit.
Fanciful thinking, but that gives a very rough estimate of what could occur. $50 million profit.
If earnings were $50 million & after the exercise of options, the earnings per share could be in the vicinity of 28 cents per share.
If we use a P/E of 30, the share price would be $8.40. A more conservative P/E of 20 gives a share price of $6.16.
Now SMN may be able to do more than 500 installations per year & that would mean an even higher share price.
All just rough guestimates but it gives some idea of the potential.
SMN Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
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