Hiya SLE , Don't know, with how close the Sri Lanka deal is I'd expect it to be kept as minimal as possible more hoping than expecting... This company so far seems to be playing by the rules so what ever amounts and what ever discounts occur I'm sure it'll be predictable enough. Probably something to cover wages, costs and wot nots.. Also depends on how the Sri Lanka deal is structured.. We know through mainstream media that the SriLanka Govt. have funds at the ready to implement their clinical waste programs so looking at where and what payments are scheduled prior to delivery, after delivery and on an ongoing basis with respect to service and maintenance contracts etc... I'm still not 100% sure on if the deal is outright purchases of the Metamizer units plus ongoing service contracts or based solely on volumetric waste service contracts. They have been announcing revenue upward from $15M so I don't doubt there is a service contract in the deal somewhere.. Really nothing is certain until the contracts are signed and the till starts ringing. This is the first major order that the company has in its inventory so until we get to see how management have negotiated this deal we are all a bit in the dark and when we do finally get to see how this company negotiates its deals, then we might be able to project a rate of growth for subsequent orders and help determine an optimal Long Term investment strategy and project an appropriate Market Cap.
I do like the PRR 3year chart as mentioned earlier as a reference to the shape of an R&D turn around event, not necessarily the magnitude of the MC's but the shape. I guess the things that I consider here most lucrative for MDV is the extent and rate of increase of the global market $$ that Clinical Waste Management Programs are moving toward lower CO2 footprints, lower waste fill volumes, lower transport costs, safer landfill which could equate to cheaper dumping fees. The amount of reach into the global hand sanitization market SunnyWipes could attain through its World Health Organization involvement and I guess the global sentiment movements into environment issues but I don't know exactly how to put a dollar value on increasing sentiment.. Where will MDV's Market Cap be after 10 Substantial MetaM orders?...Plus SunnyWipes and maybe even a little Diakyne thrown in for the trifecta ...
Apparently Sri Lanka is a difficult country to do business in which might account for such a long process of getting the MetaM order off the ground so with a considerable list of countries that showed interest in MDV at the Germany presentation, I'd expect that orders coming in from some of those other regions will be less complicated and processed in a far more timely fashion.
Once the engine is on she might or might not take off like a rocket but in any case I reckon there may be quite allot of MC K's in the tank. Just gotta turn that freaking key... I've got my fingers crossed on this final proposal as I'm sure many other long termers here have.. Come on Paul give it the old Heave ho and get this little company fired up.
Glad I don't have word count... Crickey.
MDV Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
