Yeah, its a good deal. The rate of consumption for all the Ambos in one state is pretty good so a constant demand should see some good figures come through and filter into the costs of running the company.. Thats the most significant milestone for any R&D and once the next quarters figure come through we should get a good appreciation for the level of revenue that this deal will provide the coffers.. Ultimately though the final comments regarding the overwhelmingly positive result of the trial and also the notion that the deals value will be used as leverage are very reassuring on several levels.. The overwhelmingly positive comments should flow into the orderlies working in the emergency rooms.. Word of mouth into every emergency room that the ambos are using a new product with superior results to the existing products. Well that type of thing is a fairly fast transition. It shouldn't be too long before NSW hospitals are on the blower to Paul regarding supply of the gel. No doubt the Wipes products will also get a look into.. Now I'm not certain if in Paul's interview he mentioned trials as in the Plural form so if he did, then we might expect something further... In essence this deal could easily sustain the running costs of the company so that any subsequent deals in SW or MetaM's will be be pure cream on the profits side of things and then it will be up to the direction of the company as to how we see the profits being directed.. So the leverage side of things may ultimately result in a financial loan or something like that if management see value in advancing any part of the company, be it production lines or more professional personnel or any combination that equates to structural growth. At the current Share price, the value here is a no brainer, of course we haven't got any figures to start playing fair value games based on the deal but the reality is the scope of revenue should cover most running costs which is derisking the stock immensely and perhaps even shifts sentiment considerably toward new retail investors looking for a longer term holding pattern given the areas of growth that are likely to occur for the company. I would guess that this company will take us into the next quarter with a far safer sentiment from the current long term holders perspective... And we may even get to see some of that good old rodeo action bucking us beyond 5c. ADO got a support base at around 4.5 after a similar type scenario but it was bucked from 1c up to near 10c in the heat of the moment....... The weekend should give some corners of the retail market time to figure out what this deal means for the company and ultimately the stock, so we should see something if not next week then as soon as the EOFY systems level out and investors start looking for a de-risked, potentially high growth stock. Wish I had money to strengthen my holdings at this penny level, my pocket money investment is pretty small. Most of you guys would be pretty surprised at how little I have compared to the amount I have written here.. Anyway.. Its good to see her with a little bow wave, perhaps this ship is ready to steam off..
Anyway
Have a good weekend.. Cheers..
MDV Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
