If you want to sell. Sell. But don’t enter a stop loss market-...

If you want to sell. Sell. But don’t enter a stop loss market- or limit order, or the bots will make you pay.

The JLTV from Oshkosh is the successor of the legendary Hummer. It’s first class. The roof can seat the EOS R-400S RWS or a manned traversable gun turret, on request of the client. Why would you order a warzone vehicle that can withstand large road bombs and then put a sitting duck on top? The US Army is expected to order in total 50.000 vehicles. Tens of billions worth. The UK is already placing an order for 1 billion usd. There is no alternative for the JLTV. During 2017 EOS’s new RWS have been selected as the “preferred” bidder in every competitive tender in which they have competed. This year is all about investing and building production facilities.

EOS is right now delivering on the projected 2,2 billion usd in sales for the R-400S-Mk2 weapon system in the next 5 years. Profit margin on the sales is 10%. And there is 12-15 years of spare parts and support with a very high profit margin. On average a total profit margin of 15% seems reasonable. That adds up to a profit on the R-400S-Mk2 of 330 million usd in the foreseeable future. The share price of EOS has made a turn for the better in the last 12 months, but the current market cap of 140 million usd still seems a bit ridiculous. Consider as well that EOS expect billions in sales from the R2000 Remote Turret System, end of 2018 onwards, and off course Space Systems, orders are expected to kick in end of 2018.

Management are insiders. They have given themselves modest salaries. And a royal option program. Excercise price 3,00, exercisable on or before 31 januari 2019, fully paid.

Cheers