A little recap: On 21-6-17 the company announced the Orbital ATK...

A little recap:

On 21-6-17 the company announced the Orbital ATK order of 170 million. The majority of the payments on the order were expected towards the end of the contract date. Orders “deliverable from 2017 to 2020”. And “EOS has now secured access to sufficient resources and supplies to expand its order intake for 2017 well beyond this initial AU$170 million contract”.

Nevertheless, three months later, on 19-9-17, EOS announced a “$20.9m placement to secure funding for the fulfillment of the $170m Orbital ATK contract. EOS now expects to exceed AU$500 million in 2017 orders for its new R-400S-Mk2 weapon system”.

Does this indicate poor planning by management? It looks like it.

Still, revenues on this single Orbital order alone will almost equal the current marketcap. Consider as well the CR income, sunk costs and losses in the past.

If the company will “exceed $500 million” in orders this year, EOS still looks very cheap. And as I wrote earlier, a large order backlog creates a nice timing for a spin-off. Defense companies headed north since the election of Trump and are priced for perfection. They must be eager to buy solid revenues & technology. Besides, Ben Greene and Fred Bart have reached a respectable age and might want to focus their attention to the space business.


If memory serves me right, EOS said that from Q4 2018 onwards its Space Systems sector will independently contribute significant revenue and profit. If everything goes according to plan, of course…


Cheers