The company has a plan A,B, and C already in place. They are executing it exactly as they spelled it out last year. The first phase was to start to get the product accepted in the market and generate revenue quickly. That is accomplished by selling it at a discount initially, which is why the margins are very low for the time being. Once they get the building code approval the margins will increase substantially. Keep in mind the CEO was the top salesperson at Weyerhauser and won numerous awards for developing a market from zero to over $100M in revenue in a year back in the 90's, so he knows what he is doing. So with A done and B being accomplished with the building code, plan C is to land some large overseas deals. That type of deal is what will make this a $5 stock in a year vs a penny stock. If they had a substantial deal lined up overseas I am quite certain that the strategic partner would provide the financing considering they own 40% of the company and their stake would be worth 50x what it is now. Keep in mind that the Dec Q revenue was up 200% from the year prior Q and they almost equalled all of last years revenue in one Q. For the fiscal year ending June they will probably do $5M-$6M in revenue which is a 500% increase over last year. That should accelerate once the building code is approved to sell into the pressure treated market. For calendar 2012 I think they can do $15M-$20M not including any overseas deals. We are rapidly moving in the right direction imo.
