There’s been a few people burnt by this stock and the last thing...

There’s been a few people burnt by this stock and the last thing they want to see is a turn around.

These people bought during a time of market hysteria in the sector, where prices were pushed to levels that had no substance or reasoning. Most, if not all, of the companies in this sector were start ups with market caps into the 100’s of millions, a ridiculous level that could not possibly be held.

Since then EMS has grown and diversified into other products and services and are now in the process of signing up major contracts, as per the recent malaria contract.

The malaria contract alone will be worth approx. A$40m and possibly grow to over $100m within 2 years, with distribution starting as early as mid 2007. Even if EMS Australia makes only 5% on this contract, it will mean a profit of A$2m to $5m, not bad for a company with a market cap of $20m.

When you take into account the possible earnings from the malaria contract, other African contracts that are currently being negotiated, earnings from already profitable subsidiary companies, needle contract being negotiated in UK, and other business in Germany, then a market cap of $20m is ridiculous.

I believe the only reason why the share price is at current levels is because of the recent placement at 10c. These people have been more than happy in taking their 20% to 100% in the past few weeks, and you really can’t blame them. Once they finish selling I can see a slow and gradual climb back to 20c and then take off with any major announcement.

Anyhow that’s enough for this year, I’m about to sink my first for the start of a big night, Happy New Year to EVERYONE.

-----------------------------------------------------

Ordman, you seem to be a very clever person, you may want to study up on ABU and have a look at recent trades in GNL.