To bring you up to speed on their history, in the early 90s they were being touted to get the job of 2 stroke engines in the US. Shares were valued at about $5 then. They dropped off in price and the possibility of another contract with GM loomed, a V8 GM engine was showcased in 2000. At that stage there was a run up in price to peak at $2.40. It all fell in a heap after Bush won.
In my humble opinion if an auto contract was signed for large volume the sky might be the limit. Royalties are paid on a Horse power basis. On 50cc scooters the royalty is about US$7-8 per unit. On an auto it would be well in excess of $100 per unit. Numbers I have seen earlier were much higher but who knows what might be negotiated. Royalties go straight to the bottom line.
However, do not get your hopes up about an auto deal any time soon.
Regards
I hold lots at a loss.
OEC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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