I didn't catch the rock bottom, but I caught it after a safe run up with consolidation.
As holders know, but maybe not newbies, EOS is the only play in the southern hemisphere watching for space junk. It's that space congestion bit that points to the future:
1. Space Congestion
After 50 years of rocket and satellite launches, space is getting crowded. Debris from destroyed satellites and other space junk is piling up, and that shrapnel that can destroy other satellites and hinder access to space. This is creating complications for national security, satellite communications and GPS navigation.
http://www.thefiscaltimes.com/2016/06/23/21-Business-Buzzwords-Goldman-Sachs-Thinks-You-Should-Know
The Trump ascendancy may be seen in the last few days, a beginning of a rally possibly, certainly the start of a four year aerospace defense comittment. Not much to pick from on the ASX:
http://www.reuters.com/article/us-usa-election-aerospace-idUSKBN1343EI
Of course lest we forget EOS's other business innovation, the business of better killing:
As to the defense sector, it is destined to be one of the groups that will gain renewed attention from investors as the industry is bound to get more government attention and funding under the Trump presidency. It’s no secret that the candidate Trump often expressed a hawkish stand on what’s happening in the Middle East, specifically with ISIS, and other threats against the U.S. elsewhere.
http://www.forbes.com/sites/genemar...oosts-demand-for-defense-stocks/#499722748c3f
Ther are those smug wags out in HC land that will label EOS a P&D by virtue of the reccie by Port newsletter. A one year graph seems to substantiate their claim. However, three other facts clearly:
Substantial Shareholders
At 6 June 2016 the following substantial shareholders were registered:
|
Title |
Ordinary Shares |
% of total Ordinary shares |
| 1 |
Fred Bart Group |
5,309,075 |
9.34 |
| 2 |
Northrop Grumman Space and Mission Systems Corp. * |
5,000,000 |
8.80 |
| 3 |
Technology Investments Pty Limited |
3,954,185 |
6.96 |
* These shares are registered in the name of Citicorp Nominees Pty Limited.
http://www.eos-aus.com/eos/investor-relations/substantial-shareholders
1. The Chairman, Fred Bart, must've missed the Dump call.
2. Northrop must hate losing out to Lockheed in this race, but money is money, and EOS will make them money. Maybe they're there for a wee bit of revenge, ie. if Lockheed were to t/o EOS they'd have to give 8.80% of it to Northrop.
3. Technology Investments has 6.96%, are they too naive to spot a P&D, or do they see MORE upside.
4. Lockheed Martin JV suggests they have deep tesed the tech to the degree they've put their reputation on the line. Not tobe trifled with.
What about the EOS business model? It's the most beloved by analysts, employees and investors, being greatly based on subscription:
Steady Cash Flow in an Unsteady Marketplace
A common retail business model in the digital era, the subscription model offers a product or service on a continual basis for a recurring charge. Subscriptions are a common pricing option for online services and media companies, with recurring charges that can occur annually, monthly, weekly, or even daily. With this model, companies look to improve their cash flow through automatic payments, while providing greater value over time. In many cases, subscriptions also provide an easy foot in the door with customers hesitant to pay a high initial price to try a service.
http://www.digitalbusinessmodelguru.com/2013/07/the-subscription-business-model.html
... or, as a primer:
http://www.investopedia.com/ask/answers/042715/how-do-subscription-business-models-work.asp
Hardly last, in fact almost dominating, is the economic moat around EOS. First barrier to entry is the proprietary, patented technology. After years of searching the US via Lockheed selected EOS-Lockheed. The second part of the moat is the sheer cost of setting up a competitive business. A real contender has voted its money in going with EOS. Good on ya, Northrop! No hard feelings.
An economic moat is a competitive advantage that is difficult to copy or emulate, thereby creating a barrier to competition from other firms. Common economic moats include patents, brand identity, technology, buying power and operational efficiency.
http://www.investinganswers.com/financial-dictionary/businesses-corporations/economic-moat-363
Starry, starry nights ahead for EOS.
http://toptenplus.com/wp-content/uploads/2013/05/Starry-Night-by-Vincent-Van-Gogh.jpg
OV
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