PE ratio are meaningless at the moment. And they need to be done using earnings, not revenue!
In the short term, the question is cash flow - does CFCL have enough cash to reach break-even while properly exploiting its technology? If not, how much dilution is going to be involved in raising the necessary capital?
In the medium term, we know that 20,000/year orders are possible because EON has signed up for 100,000 over five years, though that's non-binding unless they want to maintain exclusivity. We don't know what the margins will be like at those volumes - which should pull unit costs down, but also the selling price - but at a conservative 10% on current pricing, that could be $50 million per year, and that's just from the EON partnership.
In the long term, mCHP could fail to take off and remain a niche product, or CFCL might be superseded by newer technology, or any number of other disasters could ensue. On the other hand, million unit/year sales can't be ruled out either...
CFU Price at posting:
13.7¢ Sentiment: LT Buy Disclosure: Held
