impact of the latest ann on a) profits b) revenues c) share price upside potential, EPS, technical anaysis etc
Hi SB2000
a) The company is currently continuing to make a loss from operations. This is due to many factors, however their technology is deemed amongst the best by independent research and adheres to the drug cut off levels used by major law enforcement offices around the world. If they can grow market share - particularly through long running government contracts they will eventually become cash flow positive.
b) As above - revenues have been slow, however as they are targeting governments, the potential contracts are large and long running, however the sales process is particularly protracted. Pulling one or more of their major contracts over the line will easily make them cash flow positive or allow them to spend more on R&D (such as electronic devices for roadside testing).
c) They are building a company here - not fleecing market participants. Short term, we have seen a rise with strong consistent (not dropping away) volume. Once those looking to quickly double their money from the rights issue are taken out, the share price will appreciate rapidly with suitable news. The register is tightly held - which can be seen on the charts by the rapid rise into the 4 cent range back in April on low volume. Long term moving averages are now trending upwards. Any decent news (and there looks like a lot that can be potentially released soon) will see this blow its lid.
EPS is still negative - as expected from a company with negative cash flow LOL.
SBN Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
