Revenue was doubled but profit up a shade. The problem with swick is that they are innovators and will always spend a lot of money on R&D. Therefore the profits will never be that great due to the high cost despite large revenues.
The key will be if they do hit on a good design, such as the safety aspects of their RC rigs, the big players like BHP will jump all over it as safety is key and they will pay a big premium for safe rigs. Other things like cool rooms for the drillers will enable the company to keep drilling in hot areas all year round whereas traditionally they have had to shut down over the summer months or reduce to a single night shift on many sites.
Swick is easily worth $2 but it is just that the market is down in general and a few traders have sold on the half yearlies. They will have a great FY07/08 and the price will bounce back. I believe a number of RC rigs were only commissioned this qtr so the revenue streams for those this next half year will be huge.
SWK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
