eos profit downgrade smashed, page-6

Dear dnatron

Everything you suggest deserves serious and due consideration.

I think the telescope business should go but the rest of the space business does have real (if not future) value.

The company is hampered by an accounting requirement which requires expensing of all R&D when really the technology on the space business should be capitalised.

After arriving home, I mentioned to my wife (a business woman) that we had a tough day with EOS. She only asked two questions, is it solvent and does it still have its military contracts?

In the full light of day, this year EOS is will be slightly slower in ramping up with CROWS than expected and have a total cash burn of $3 M. This can practically be funded on Fred Bart's mastercard.

Shocking as it was, I think the market reaction was well overdone at $1.04 on the day but clearly there was a lot of pent up anger in relation to the stock.

It is certainly a better buy than at $5.70 (peak) and the capital raisings of $4.50, $3.40 and $2.30 and with a current cash backing of 40 cents per share.

I don't know where exactly the stock will bottom but it has truly smashed all my downside predictions.

It is now ripe for a takeover by Northrop but big companies are slow to recognise and react to opportunities like this one and another US player could jump in.

Regards Eos (No relation)