Dividend projection confirms this IMO. Massive. $US6-7 million initial sales from Delta and top line revenue of C$13 million from AEM. Short term revenue - check
$US 10-15 million licensing agreements per annum/per operator + subsequent (non-discounted) sales of equipment at a near 100% margin. "AEM has built relationships with many OEMs Tier 1 to Tier 3 suppliers, other manufacturers, as well as a global network of aircraft and component dealers." Future exponentially increased revenue - check
"Becoming an OEM-certified manufacturer is definitively a long-term, time and cost intensive process" Increased what was already 10 years worth of barrier to entry - check
"Cobham markets and sells products which are manufactured by AEM" - We've gained a relationship with a GBP3.25bn market cap company who have been selling aircraft maintenance to government and defense organisations for 25 years! Future diversification of sales - civilian + government + defense + planes/helicopters - check
Management of both SMN and AEM throwing in their own cash. David Veitch and Ray Lewis founded AEM in 2009 and have now sold it a mere 8 years later for $10 million. David Veitch is a former director of SMN and has been indirectly as the controller of AEM a major shareholder of SMN since 2012. His SMN directorship was passed on to Ray Lewis last year. - Committed, long-term and successful management - check
AEM held 1,000,000 shares in SMN prior to the purchase.
"As a result ... ability to deliver value from the design stage (product development and advisory), to manufacturing (delivery of consistently high-quality products), through to fleet maintenance (repair, refurbishment and replacement)." Moved from developmental (risk) stage to manufacturing and even servicing the products ourselves - check
$360,000 turnover in the tiny 30 minute window of opportunity today. Surely we are knocking on the door of Mr 509,292 @ $1.85 by COB Friday if not before. Can't wait to find out if he's real or not! I've grown quite fond if his daily antics, it will be a shame to see him go.
GLTAH & DYOR & look forward to the next day, week, year, decade of SMN
SMN Price at posting:
$1.59 Sentiment: Buy Disclosure: Held
