Cheers Whiffo for the detailed info on the additive industry and where the competitors are up to or products they are targeting. It makes me feel more comfortable to know they are more or less the market leader in this space which will count for a lot down the track when other companies are catching up and having to not only prove their product works, but they will also now have a proven benchmark that they will have to exceed or undercut massively.
My initial thoughts (and what I believed management was portraying) when I brought into EDE was that due to the large quantities of cement used in all the projects they are targeting and due to the reductions in the amount of cement needed to be used (and therefore cost savings from govt's & companies) that EDE would be making A LOT more per project or contract (road/bridge/beams etc) than the $100k here or there.
If they are currently just pricing in on the low side to build up a market share and a reputation in the industry then fair enough. Therefore I expect it may take a good 2 to 3 years before EDE become the market leader and EdenCrete is specified in the contracts the additive that must be used on most/all projects. This will mean their clients will be coming directly to them and then they will be able to increase their pricing and start making some serious profits.
I was hoping it would happen a bit quicker but it looks like there is a strong possibility of a huge upside in the long run.
EDE Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
(20min delay)