Well the market likes profitable money and not businesses who run at a loss.
I don't comment too much on EOS these days. Everyone knows my thoughts. However, when you look at the amount of debt that they have to service this year, it's going to be a telling year for the business. Without harping on too much, most would be aware that we still have the overhang of debt owed to SOL and Export Finance Australia and I don't know what's happened with the dispute regarding the middle eastern customer regarding the compliance to the offset credit obligations? Still don't know what's happening with the 'conditional' Ukraine contracts announced on April 3rd, 2023 and we don't have a clue about any potential involvement with Hanwha/Elbit systems re: Land 400.
It's a good thing that the company has some cash stashed away and a front loaded EM Solutions contract. The company still don't tell shareholders about the important stuff. I'm not referring to anything sensitive to military dealings. I'm specifically referring to their lack of disclosure about the business in general.
Revenue is one thing, but having the cold hard cash to pay the outstanding bills later this year is another factor altogether. I'm hoping that for the sake of investors that the company is acting upon it's "cash is king" mantra. I sincerely hope that come the next report that they aren't again recognising cash before having received a cent. The people who are due to be paid will only accept cash and not revenue. That's my perspective on why the share price isn't moving. Personally, I still believe that given the tail winds over the past god knows how many years, the business has been woeful.
Because I follow the business, this attachment popped up on my google feed on December 7 2023. When I looked closely, I saw that it was 5 years old. And here we (still) are. So much for the narrative. P.s. - every man and his dog seem to be getting stuck into Directed Energy these days.
Still, we live in hope I suppose.
EOS Price at posting:
98.0¢ Sentiment: None Disclosure: Held
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