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Re: djharker post# 41686

Monday, 11/06/2006 5:54:09 PM

Monday, November 06, 2006 5:54:09 PM

Post# of 64738
DJ – thanks. Current true production limited is much more believable. When the 10gr/24 hour number first came out people were going crazy with revenue projections not recognizing that the first orders would probably be for sub gram quantities and change over from one batch to the next would likely be a week. The one gram/week seems realistic and would suggest up to ten new orders in the last quarter – the 10Q will be interesting. To eventually hit the 50gr/day in the new facility will require a very large order that would be run for days on end. That’s going to have to come from a commercial product and is probably a few years out.

Regarding the other post which may be moot at this point and maybe semantics but I still say that GM’s or any other manufacturer’s “ability to produce revenue is capacity limited”. You can’t sell what you can’t make. The example that you gave

>“If GM could double car production, they would NOT report double the normal annual revenues in the next 12 months.”

is correct but points out an inability to sell excess production rather than not being able to sell after reaching capacity. In that case the example would be – if GM’s sales could double, they would not report double the revenue because they would not have the capacity to meet the demand. In other words their ability to make revenue is still limited to their ability to make cars.

It will be a good day when cygx has that type of problem with the new facility.

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