The opportunity within the Utility space alone I think justifies a much higher share price, and as such i am buying more at these levels.
I am intrigued by the Entergy announcement - which with simple maths (4m poles @ US25 mid price) gives a 100m USD opportunity over 10 years for Pointerra and how it compares to the already existing relationship that Pointerra has with FPL.My understanding is that Pointerra are generating only 1-2m pa at best with FPL currently.
This is a along way off a $10m pa runway that it appears Pointerra will have with Entergy - why is this so when the FPL case is held up as best practice?Does it mean there's more revenue to come from FPL for Pointerra or is the approach different with FPL? My understanding is that Entergy are seeking to follow FPL's grid hardening programs approach which according to the recent announcement is a very big deal for Pointerra.
Regardless it isn't hard to build a case for Pointerra to have a Utility business segment in 3 years time with annual revenues north of 20m (probably at margins of 75% or more). There are many more utilities in the US with the same challenges and the US governments both federal and state are encouraging infrastructure improvements in the power markets.
Buying under the cap raise price seems a no brainer to me if one has conviction that Pointerra has a role to play in the utility grid hardening program alone.
All I'm my opinion of course. I am in for the long game on this.
3DP Price at posting:
11.3¢ Sentiment: Buy Disclosure: Held
