AYSI, OldPro- I agree with your strategy to buy on the bid or be patient. This company does not put out PRs between Qs, so it is likely IMO (as long as a big investor doesn't figure it out) that there wil be chances to buy it on the bid as a few shareholders move on. I won't be selling my shares though :)
They have a second line that is supposed to be coming online by Q1 2008 (only have 1 right now) and the new employees hired last Q didn't come in until the very end of the Q from what I was told. So Q4 2007 IMO will likely have $2+ mill revs with just the one line but with the added help/head count, and Q1 2008 should go to over $2.5+ mill if they get the second line built and fully operational and up from there with new employees getting trained and new line snags getting worked out. Could have $3+ mill revs by Q2 easily IMO. I'm still trying to get a better feel for margins at the higher revs levels.
But they need to keep up their worker head count (it is hard to find workers in West Australia right now with the massive iron ore projetcs going on in the Pilbara- specifically Rio Tinto's JV Hope Downs Project and Fortescue Metals Group's Cloud Break). If they can get the new line up and running without too much disruption (both lines in the same building) then they could boost revs output quite a bit. Especially if they start a swing shift or something of that nature and can find the workers to fill those positions for a second shift...
Good luck!
I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog
"We didn't build this company on the sniff of an oily rag."
-Anonymous
AI
