Dear LunchalotIf EOS gets the big CROWS order (and also picks up...

Dear Lunchalot

If EOS gets the big CROWS order (and also picks up Singapore and Australia) and makes significant progress on the space side, then the company will be worth a lot more than $3 per share (or the $4.50 that Northrop paid). A $50 M profit on a $400 M turnover equals a $750 M capitalisation or $15 per share.

Northrop do not have it all there own way because the exclusivity agreement with Northrop runs out in 12 months (originally a 3 year agreement off the back of the share issue) and space ablation is not part of it.

Ben readily admits that they got caught out at the AGM by the late disclosure to them of the loss making space contracts. Since then, I have had some 8 hours with Ben and Fred separately and together. I am very comfortable with their responses.

In my view, part of the problem has been that the last capital raising was sold as a P & L float when in fact it was not. The profit line changed but growth was still very strong. I still think the reaction by shareholders was totally over the top - inexperience with military stocks, pure stupidity (perhaps the crack suicide squad out of Monty Python), who knows?

It is very difficult for some to keep the emotion out of it, but ultimately better to buy and sell with a cool head.

Surprised you have not revised your MRE forecast up.

Regards Eos