Hi Leit...
Hope you are well...interesting times ahead ....
Picking up on speeway's post from earlier, I found a post i did some weeks ago on this topic and what is now tied to Lockheed Martin and the numbers are worth repeating...here is my post from a few weeks ago...
I can't help but do the math on this one.......
"The contractor has indicated that Torvec would become its exclusive, military supplier of CVJs were it to be awarded the contract, which currently calls for at least 320,000 constant velocity joints annually and at least 1,280,000 over the life of the program. A sales price of approximately $500 per CVJ would generate approximately $160,000,000 in gross revenues annually and approximately $640,000,000 over the life of the program."
This type of possibility to me is an all or none situation. If the contractor doesn't get the deal, Torvec doesn't. But what if they do....this one deal would be an absolute game changer of significant proportions literally over night...If you used a profit margin of 25% to run some rough numbers, that's $40 million in profit per year or roughly $1.32 per share. If you use a market multiple of 10 times earnings, thats a $13.00 share price on one deal, for one product, that repeats over a 4 year period based on the total value of the deal....(that multiple could be much higher when the market factors in growth multiples which could produce a 20 plus multiple) Thats one deal...on only one product....now throw in what I believe would be a very large share naked short cover pandimonium and this would run beyond those numbers for a period....now throw in a deal with a mainstream manufacturing partner to pick up some of that national annual 200,000,000 cvj market and add that in the earnings...now add a iso-torque deal or two and we've got ourselves a regulation barn burner....
For me...that is worth waiting for...
