I'd be careful with this company; I have been monitoring this company for around 5 years. Yes the products the company comes up with have a market, yet with every change the satellite companies make, the products have to be redeveloped (tweaked).
The company is excellent at developing products, yet (in my opinon) they do not gain sufficient (profitable) sales to cover costs. Whilst as a rule I have no issue with company’s spending money on R&D; after all they must grow, unfortunately this company appears to never have the sales from existing products to that generates sufficient profit viz-a-ve surplus cash to reinvest back in to the business for R&D.
Yes, the company may finally have 'A' profitable year, to extrapolate that out to a number of years by applying 'X' multiple, is very risky with this company.
D: I have held position in this company a couple of times over the years, when I thought "things were on the up" only to be continually disappointed.
Cheers
clever1
WRR Price at posting:
23.0¢ Sentiment: None Disclosure: Not Held
