As I said before, it is purely mathematics. Do your own sums. I have projected the maximum number of shares on issue, except for some shares that may be issued to A.E.M. employees. I have suggested a P/E to use & others may choose whatever earnings that they believe most likely.
We do not know what the revenue will be in the first or second full years after FAA approval. We do know that Delta will owe SMN about $3 million by the time of FAA approval.
We do not know how quickly the tier 1 airlines all come on board. The smaller airlines will probably follow.
It is only now it has been suggested revenue of about $100,000 per APB application. What about additional applications? It is anticipated that they will be approved much faster than the APB. We do not know what the airline savings will be by using sensors in other areas of the aircraft & that will determine the revenue for those other applications.
There are many unknow factors, including the use of sensors in areas other than airlines but that could be years down the track.
If SMN has an increasing revenue stream, I believe the P/E will remain high until it appears that the increase in revenue will moderate.
There appears to be a substantial back load of orders for new aircraft & if SMN can have sensors installed during manufacture, the revenue will be increasing for a reasonable period.
SMN Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)