You have a good point. I have no real feel for what it could cost NEA to break into new O/S markets. It will also depend on whether SC chooses to embark upon a longer-term, whole region/country entry strategy or start with spot contracts, and spend 2-5 years developing niche expertise.
GG used to talk about starting the O/S strategy with NZ. This makes sense on several levels but I doubt whether it would 'WOW' the market...Unless it announced a large contract.
If one knew which countries NEA had: 1) certified camera pod and the attendant aircraft mods, 2) actually asserted their IP (ie made sure no new guys were bumping their technology) 3) registered subsidiaries.
Then we would have a better idea.
One of the problems (for us shareholders anyway) with licence deals is that they almost always tend to be confidential and so little/no evidence of its real value. But of course, the right deal with a big name would be fantastic.
But I just get the impression that SC would rather be in control of the product's growth into a new market.
I don't want to give any suggestions along the following lines, but with a Mkt cap of $100m, raising $5-10m for a new country push would be relatively easy and, I dare say, well accepted.
But as I said in a post a while back, I just don't think theyre ready yet. There's still a way to go in product development, both depth and breadth as well as getting the pricing points right. There will be a bit of "Try it and see what happens" type development, fine tuning etc.
Either way, I think we all can recognise the medium-longer term potential of this product is very exciting.
Cheers,
PS: Looks like the instos are back this am! +3c!
NEA Price at posting:
27.5¢ Sentiment: LT Buy Disclosure: Held
