SAS - Not Long To Go

I have been in this game for over 30 years and have taken a ride on some of the biggest stock movers over the last 3 decades. I feel this qualifies me to put SAS into perspective concerning the current price movements. I rarely come into the SAS threads anymore based on the amount of rubbish being posted. I have held since the beginnings at around 2c and will continue to do so. I am really sorry to see some people who were initially positive have turned negative but with the share price falling for over a year I can understand that. Equally I feel for holders who have seen their investment crumble.

What everyone should take solace from is the negativity repeatedly seen from them and the professionals. Yes this is a positive. There are professionals hired to bring the price down working together. That is what big boys do having seen it first hand in the US and here. In any company especially a start-up it is relatively simple to spread rumour and innuendo, downramp if you will, and put fear into investors’ minds. This is a fact. And yes this is enough to scare investors from getting on board. Of course this doesn’t help anyone in a practical sense who has a higher entry than the hare price currently sits. But good news awaits.

As to revenues – this is the biggest point I want to make here:
When listing, SAS provided a timetable of milestones. They have not missed one of any consequence. Their list of achievements has been nothing short of outstanding over the last 2 years. Revenues were not to come until 2020 and after technology is proven to the customer. And these customers will trample over themselves and demand contracts. I know of no company who doesn’t want cheaper costs. The SAS teams have the skills to make this happen.

Any discussion of no revenues (meaning they are surely going into the abyss) is meaningless rubbish and mods ought to do a bit better in this regard. Every start-up has little revenue which is the raison d’etre of listing on disallowed – to raise funds to grow the company in line with their stated goals and timetable. Getting funding will be done and there are so many ways of achieving this once again it is meaningless to discuss unless you know the insides of the company of which no one here does. And this is where the trust and belief in your management team comes in. Whether you are in BHP or CLS or NAB you have to trust the management in guiding your company the best way forward.

And what’s more, the technology works and has been validated which is a far cry from miners that have years of proving resources and BFS reports needed before they can even think of building and then mining and selling – and their resource is limited. The ASX is littered with the dead bodies of uneconomical and unproven ore bodies. The SAS technology of a constellation of nanosats is revolutionary – and is proven and economical. It is a world’s first in many areas. They are first movers. The available and willing market in IOT and M2M is nothing short of massive – it is transformational – this is without any doubt to any person of sense.

So all this talk of SAS not turning a profit as yet is not a problem in the slightest. Everyone, including the professional posters understand this, yet spreading innuendo and fear into the market does work as is evidenced by the chart. SAS was always a long term play but the end game is getting closer. Remember Twitter had no profit for 12 years and its MC was $22bn. It only recently (Q42017) returned its first profit and is now valued at $28bn. Tesla has no obvious way to profit but has an even higher valuation of $50bn with almost unrecoverable debt.

The current undiluted MC is $63m, but SAS operating at a forecast $600m - $1bn per year will value us comfortably over $10bn. At what risk? To my mind very little.

What excites me more is what happens once the 200 are working producing revenues allowing SAS to command a market cap in the multiple tens of billions. The world is our oyster. Then technology will increase allowing greater comms abilities into smaller sats and positioning themselves as a serious player in larger and more lucrative addressable markets.

So enjoy the ride, sit back and relax and watch as the company expands and ticks the boxes one at a time and in the order they need to be. The negative posters can try all the tricks in the world – I have seen them all. They have been lucky to date to scare off many investors. But let me tell you we don’t need luck where we are going.