Posts Tagged ‘Chinese market’

This post is the result of a joint collaboration by C.E.S.I., Se7en (blogger at http://www.avanza.se) and Martini (blogger at http://www.redeye.se). The original author Martini has published a very similar article on http://www.redeye.se (swedish language). The original author Martini has also granted the following permissions: English translation of original manuscript (performed by Se7en), Editing and Publication at http://www.cuttingedgescienceinvest.com (performed by C.E.S.I). Further information can be provided by cuttingedgescienceinvest@outlook.com

Initial Teasers

Recently Huawei Ascend Mate 7 was presented at the IFA in Berlin and these two quotes summarize just about everything:

The fingerprint scanner is the star of the show here, working wonderfully well” – Techradar.com

“I love it, I really love this functionality!” – Richard Yu – CEO, Huawei

https://www.youtube.com/watch?v=cnbEYPCs1Lw (Start watching at 45 min to check out the FPC One Touch feature in Mate 7)

Background – Why is Fingerprint Cards a promising company and a good investment?

It’s all about supply and demand. It’s as natural as the earth’s most populated country, China with 1.35 billion people. In Sweden 9.45 million people are living, which compared to China accounts for only 0.7% of potential smartphone market measured by number of inhabitants.

The Chinese market of about 1 billion mobile subscriptions is hard to grasp, and it is now three times as large as that in the United States. Just a year ago, the Chinese and American smartphone market were equal. FPC has been active in the Chinese banking sector for 17 years. Now, FPC has established itself in the massively expanding smartphone market in China.

China Mobile with over 700 million mobile subscriptions builds out its 4G network, also known as TD-LTE, with over 500,000 base stations in over 340 cities. The goal is to finalize its new infrastructure during the current year. Smartphone sales have exceeded expectations in the 16 cities that have 4G services, such as Beijing and Shanghai. 41% of China Mobile’s customers are now switching out their old cell phone to a smartphone, and of those, 79% android.

On March 13th the News Agency Finwire summaries this expansion as “The number of active smartphones and tablets close to doubled in China over 2013 total was more than 700 million devices active at the end of 2013, up from 380 million in the first quarter of that year. It appears from a new report from Umeng.”

Introduction of Huawei Mate 7 amazes the world

After the introduction of the very first Android smartphone featuring a fingerprint touch sensor on IFA in Berlin 2014, the tech blogs literally exploded with positive comments, see below for a handful of quotes:

“The fingerprint scanner is the star of the show here, working wonderfully well”

“It works EVERY SINGLE TIME”

“Reliable and screen turns on quickly”

“It’s a legitimately impressive sensor”

“Its really cool technology”

“The fingerprint scanner on the back of the Mate 7 is nothing short of perfect.”

http://www.techradar.com/reviews/phones/mobile-phones/huawei-ascend-mate-7-1263333/review/3#articleContent

http://technewsireland.com/2014/09/06/huawei-smartens-up-with the-mate-7-at-ifa/

The fingerprint reader, developed in cooperation with Swedish FPC, works very fast and good and in addition, Huawei has associated a lot of interesting features to it. You can unlock your phone instantly by putting your finger on the fingerprint reader and need not first pressing another button on the phone. Additionally, you can register impressions from more than one finger, and linking them to your user account on your phone. Different fingerprints can then be used to lock and unlock certain features depending on which finger you use. A perfect feature if you for instance lend your phone to someone you do not want to be able to snoop through your private messages or images.

http://www.mobil.se/nyheter/f-inner-impression-huawei-ascend-mate-7#.VAwUV_l_uSp

150,000 employees – the world’s third largest smartphone manufacturer

Huawei: “Consumer Business: Serving more than 500 operators around the world, Huawei’s Consumer Business offers a suite of user-friendly mobile phones, mobile broadband devices and home devices. It aims to become one of the leading global mobile phone brands by 2015. The business group recorded a sales revenue of $9.4 bn in 2013, which represents an impressive year-on-year growth.”

http://www.huawei.eu/our-company

Huawei’s strategy is to reduce the number of smartphones to 5 models from the previous 20 models. They have also embraced the FPC way to add a plus for the expected forecast sales. In this case, they estimated the number of smartphones sold in 2014 at 80 million plus. They also anticipate increased market share of around 7% per year. Today they have 7% of the global market, i.e. they are aiming to sell 100% more smartphones in 2015! The goal is to own 25% of the market within 2-3 years.

Global Market Outlook

FPC published the below market outlook in March for smartphones and tablets over the next coming years. In this forecast, FPC has not included smart cards, debit cards, and other product of the total available market.

TAM – Total Addressable Market

$ 1.4 billion in 2014 = about 9 billion SEK

$ 2.8 billion in 2015 = about 18 billion SEK

$ 4.8 billion in 2016 = approx 31 billion SEK

1 USD = 6.35 SEK (current rate is 7.09 SEK)

http://www.fingerprints.com/corporate/wp-content/uploads/sites/2/2013/09/PJF-fireside-speech-11-March-2014.pdf

Average price per sensor is 4 USD: swipe sensor 1.5-3 USD/pc, touch sensor 5-7 USD/pc.

FPC aims to supply 60% of the touch sensor market in 2014. In 2015, the goal is 50% of the touch sensor market. FPC’s swipe sensor dominated the market with 95.4% of all smartphones launched in 2013. It is also expected to achieve an EBITDA of about 20% for 2014. If FPC meet their forecasts, the stock is very cheap at the moment. How does it look if we for example reduce its market share to 30%? See the calculation examples below:

2014: 9 billion x 30% market share x earnings, EBITDA 20% / 55 million. PE shares x 25 = 245 SEK / share

2015: 18 billion x 30% market share x earnings, EBITDA 30% / 60 million. PE shares x 20 = 540 SEK / share

2016: 31 billion x 30% market share x earnings, EBITDA 30% / 65 million. PE shares x 20 = 858 SEK / share

Worth noting is that the FPC has a negative PE’s as of today at -39.9, and the market has been waiting for patent examinations through FIDO alliance, which may lead to a delay of the above calculation forecast.

However, this very promising quote was delivered from the CEO at the FPC’s Annual General Meeting in Gothenburg:

“Those big customers we handle ourselves… The tens of millions of sensors will be delivered this year, and next year up to several hundred million sensors. ”

Collaborations

“Every member of the FIDO alliance must have agreed on the patents. Everybody is reviewing the specifications, to be sure, and believe me, I’m sure there are a lot of patent lawers that are looking at this. There is a review before it is published. We are very hopeful because there are no surprises, everyone has been involved in this work, so once that review period is over, then we expect that the first version of the specifications will be released. Version One specification will be introduced during the first two months in 2014.”

https://www.bullstreet.se/2014/01/varldens-giganter-lanserar-en-gemensam-plattform-e-handel-borjan-av-2014/

Alibaba = Huawei Ascend Mate 7 = Fingerprint Cards

“Alibaba, founded by billionaire and one-time Forbes cover story subject Jack Ma teamed up with Chinese telecoms outfit Huawei to integrate this new biometric technology into its Alipay Wallet app.

It’ll be available for use with Huawei’s Mate 7 smartphone, due to be launched this week.”

http://www.forbes.com/sites/clareoconnor/2014/09/02/alibabas-latest-e-commerce-coup-secure-mobile-payment-by-fingerprint/

Outlook

Apple e-commerce

Apple has focused on reducing the fees associated with credit card payments. Apple has an agreement with VISA, MasterCard and American Express. On September 9 2014, Apple launched its new flagship, of course fitted their new payment system.

“The first thing Apple has done is convince these four FIS to Consider transactions from Apple’s upcoming payments venture – said to launch with its forthcoming iPhone 6 introduction – as “card present” transactions, which carry a lower discount rate than “card-Not-present” transactions, because of lower fraud risk.”

http://bankinnovation.net/2014/09/apple-said-to-negotiate-deep-payments-discounts-from-big-banks/

Statement from the CEO of FPC after the launch of Huawei Mate 7

“Huawei, the world’s third-largest smartphone manufacturer, today launched its new flagship model Huawei Mate 7 with an integrated touch sensor from Fingerprint Cards. It is seen as an important breakthrough for Fingerprint Cards” and the company’s CEO continues and says that “interest from the other major manufacturers now will increase significantly.”

Huawei becomes the first Android manufacturer to launch a smartphone with touch sensor. Among the giants, Samsung has previously chosen line sensors from Synaptics, Fingerprint Cards american competitor.

http://finwire.se/component/news/FWM0002569/huaweis-lansering-okar-intresset-exponentiellt-for-fingerprint-cards-sensorer—vd

The market offers the same undeniable information – pin codes will be replaced with your fingerprint. The technical and the legal platforms are ready thanks to FIDO Alliance (Fixed Identity Online). Apple, Samsung and Huawei have now shown that fingerprint sensors are a standard component to be reckoned with in all smartphones.

C.E.S.I. summary

Today´s excellent share price discount is due the latest media news i. e. the CEO´s suspected illegal insider trading. According to C.E.S.I., these suspects should have only minor influence of the company´s fundamenta in a medium and long term perspective.

http://www.globalpost.com/dispatch/news/thomson-reuters/140911/fingerprint-cards-ceo-denies-insider-trading-chairman

C.E.S.I. believes in the following Warren Buffet quote:

“We don’t do due diligence or go out kicking tires. It doesn’t matter. What matters is understanding the competitive dynamics of a business. We can’t be taken by a guy with a sales pitch… What really counts is the presence of a competitive advantage. You want a business with a big castle and a moat around it, and you want that moat to widen over time. Coke and Kodak both had marvelous moats 20 or 25 years ago. Kodak’s has narrowed, while Coke has been building its moat. We want an economic castle. The best thing that happens to us is when a great company gets into temporary trouble… We want to buy them when they’re on the operating table.”

http://www.businessinsider.com/warren-buffetts-investing-quotes-2014-8?op=1#ixzz3Dqd6hD5F

Best regards C.E.S.I., Se7en and Martini

The author, Cutting Edge Science Invest, is a Fingerprint Cards share holder. The author does not intend to sell any shares within a near future (= weeks)

Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered.

Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”.

The article/post does not contain professional investment advice. 

Surprisingly, the author of www.wian.se (an anonymous retired policeman), easily convinced C.E.S.I. to buy SinterCast shares today. 

C.E.S.I. stumbled across this site in a high quality Redeye blogg post submitted by the alias “Bengtsson” (swedish language, links in english)… http://www.redeye.se/aktiebloggen/sintercast/sintercast-koprek-av-bjorn-davegardh-ecomotors-klart

And in a second Redeye article by “Bengtsson”, I read (translated by C.E.S.I):

“One of the world’s greatest entrepreneur, Bill Gates, is the largest investor in the legendary engine technology project http://www.EcoMotors.com which apparently will revolutionize the motor industry. Or how about a spirited five-seater family car with 0.23 L per mil in consumption, resulting in lower CO2 load than electric car. Industry insider John Mortimer’s report just recently leads to the conclusion that the engines are made in CGI. This is dynamite for Swedish SinterCast. The starting gun fires this autumn.”

http://www.redeye.se/analys/userreport/bill-gates-rena-dynamiten-sintercast  (swedish, links in english)

http://www.redeye.se/aktiebloggen/sintercast/svenskt-foretag-bakom-bill-gates-game-changer (swedish, links in english)

Consensus: Eco motors may be the end customer for the Sintercast press release January 16, 2014.

https://finance.yahoo.com/news/sintercast-secures-process-control-contract-080300244.html

Zhongding Power is granted the Eco motors licence.

( http://www.sme.org/MEMagazine/Article.aspx?id=80394&taxid=1429 )

“Bengtsson” also highlights that SinterCast also recently has been highlighted by Björn Davegårdh, an experienced swedish analyst (September 1, 2014).

“CGI is used mainly in the engine block and has superior properties, and weighs less than other materials. Contrary to what many believe goes Sintercast now a profit even if it is modest. Now scaled up production and is located on an annual rate of 1.8 million Engine Equivalents (equivalent passenger car engines) per year. It will gradually increase to 2.4 million Engine. It also includes Ford’s new gasoline engine. It happens a lot in Sintercast with new installations and collaborations in China. 2019 counts Sintercast with a volume of 4.7 million equivalent to about 125 million in revenue. This places the results at around 90 million SEK. Added to this is completely new engine that we currently do not know much about. In addition, more and more components, in addition to the engine block, that is produced in CGI. Moreover, if the so-called OPOC engine becomes a success, it can be really fun.”

https://allra.se/marknadsnytt/kronikor/storfoeretagen-vaerderas-efter-foertjaenst (swedish language)

Ok, let´s finally replace the hype, hypotheses and estimates with some plain facts:

SinterCast, General information (www.SinterCast.com): SinterCast is the world leading supplier of on-line process control technology and know-how for the reliable high-volume production of Compacted Graphite Iron (CGI).  Together with strategic partnerships for component design, rapid prototyping and high volume machining, we bring foundry experience and CGI materials expertise to every aspect of every CGI program.  SinterCast provides CGI solutions to the world foundry and automotive industries. SinterCast is a publicly listed company on the NASDAQ OMX Stockholm stock exchange.

Video link below (Aug, 2014): SinterCast’s CEO Steve Dawson gives an update on the current state of the business, comments on the progress of the installations that were announced earlier this year and toward the end of 2013. He also describes the status of the installation that was delivered to Mexico, why the previous total market opportunity estimate isn’t included in the Q2 report and lastly what the background is for the increase in the deferred tax asset during the quarter.

https://www.youtube.com/watch?v=i_u9l8VE91Y

Compacted Graphite Iron (CGI) provides at least 75% higher tensile, 40% higher stiffness and approximately double the fatigue strength of conventional grey cast iron or aluminium alloys.  The fatigue strength of CGI is up to five times higher than that of aluminium at elevated temperatures.  In comparison to ductile iron, CGI provides superior castability, thermal conductivity and machinability.  These combined properties of CGI offer cost-effective solutions for complex components that are subjected to mechanical and/or thermal loading.

Business Model. SinterCast sells or leases the System 3000 hardware, software, leases, sells supplies for sampling and charge a production fee for each tonne of castings produced using the SinterCast technology. Revenue is also derived from spare parts, service, field trials and sales of test pieces. The total running fees (sampling consumables plus Production Fee) depend on the ladle size and the casting yield for each foundry and each product. A typical cylinder block produces a revenue of around EUR 40-50 per tonne of castings, corresponding to 2.00 to 2.50 Euro for each 50 kg Engine. SinterCast business model is highly scalable, allowing profitability to rise as the installed base grows and as more products enter series production.

www.introduce.se (swedish language)

Compared to previous years, the net turnaround has increased:

http://www.introduce.se/foretag/sintercast/nyckeltal/

Technical analysis “Best Fit Change Line”. The following chart estimates an ordinary least squares regression model for SINTERCAST applied against its price change over selected period. The best fit line has a slop of + 0.59 which means SINTERCAST will continue generating value for investors. It has 44 observation points and a regression sum of squares at 611.9, which is the sum of squared deviations for the predicted SINTERCAST price change compared to its average price change.

http://www.macroaxis.com/invest/market/SINT.ST–technical–SINTERCAST

Current Sintercast status http://www.sintercast.com/corporate/history

  • 23 fully automated process control systems and 16 mini-systems installed in 12 countries and supported in 10 languages
  • More than 55 components in series production
  • Approximately 2 million castings produced and 118,500 Sampling Cups shipped in 2013
  • Series production for passenger vehicle, commercial vehicle and industrial power applications.

C.E.S.I. is thrilled to be a new SinterCast share holder.

Best regards, C.E.S.I.

The author, Cutting Edge Science Invest, is a SinterCast share holder. The author does not intend to sell any shares within a near future (= weeks)

Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered.

Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”.

The article/post does not contain professional investment advices. 

I appreciate and celebrate the eco-friendly Opcon Powerbox technology. Recently, numerous press releases and multiple small orders have been announced. http://www.opcon.se/web/Press_releases.aspx

The fact that major capitalization on the Opcon technology has been “delayed” for a number of years is what made me particularly interested in this case.

Opcons 2014 technology is the result of decades of research and developent http://opcon.se/web/History_1.aspx

The company is listed on the Small Cap list of Nasdaq OMX Stockholm. No dividend has been paid.

Today, there are 379 millions of shares. In the 2010 annual report, the number of shares was 25 millions,

This equals a total net dilution factor of: 15 (end 2010 until today´s date)

Early 2010, the value of the share was ~15 SEK,

Recent week´s share price ~0.55 SEK (first week of september 2014, the last 2 day´s excluded…)

Today, September 10th 2014, this sums up to a net loss of approximately 96 % for the 2010 year´s shareholder.

Market cap early 2010 (15 x 25 million) = ~375 million SEK

Market cap 2014, recent days = ~220 million SEK (2014-09-09)

My initial conclusion, solely based on numbers:  It is not too hard to understand that many of the 2010 (or 2011 or 2012) Opcon investors, i. e. ”the old timers”, possesses a very negative view and and lack of trust for Opcon and the Opcon board members.

I do not have the time or the energy to describe what went wrong. It has already been discussed in other forums (e. g. in www.redeye.se, swedish language) but yes, I am aware of the historical events e.g. Tricorona).

Instead, let´s zoom in on the key messages of the January to June 2014 interim report (http://opcon.se/web/Reports_3.aspx)

INTERIM REPORT JANUARY–JUNE 2014

China is the key as Opcon looks to the future

  • Efforts now initiated to develop the Chinese market and parts of South East Asia and create an industrialised manufacturing base for Opcon Powerbox together with Snowman
  • Hong Kong Snowman Technology Ltd. second largest owner of Opcon following directed placement of shares
  • Savings programme now being implemented that will cut annual costs by around SEK 30 million
  • Reduced loss despite lower sales, loss after tax of SEK –4.8 million (–15.1 m)
  • Underlying operating loss for Q2 of SEK –1.0 million (–7.4 m) before non-recurring costs

First half of 2014, January–June, remaining business

  • Net sales amounted to SEK 122.3 million (136.7 m)
  • Operating loss (EBIT) was SEK –10.5 million (–21.8 m)
  • Loss after tax of SEK –11.0 million (–29.3 m)
  • Earnings per share SEK –0.03 (–0.09)

Q2, April–June, remaining business

  • Net sales amounted to SEK 54.9 million (62.7 m)
  • Operating loss (EBIT) was SEK –4.6 million (–12.3 m)
  • Loss after tax of SEK –4.8 million (–15.1 m)
  • Underlying operating loss for Q2 of SEK –1.0 million (–7.4 m) before non-recurring costs
  • Earnings per share SEK –0.01 (–0.05)

Significant events after the end of the period

  • Swedish order for delivery of bioenergy plant worth around SEK 28 million
  • Declaration of Intent signed with Snowman concerning formation of joint company to develop the Chinese market and create an industrialised manufacturing base for Opcon Powerbox
  • Order for one Opcon Powerbox ORC and one Opcon Powerbox WST from Snowman as reference equipment for the Chinese market

In a relative comparison to the previous report(s) and in my opinion, the numbers are fantastic.

Why?

Because, I believe the numbers points towards a near future transition from a negative to a positive net result, independently of major near future triggers. This attracted me. During the last days of august, I made a statement and transferred / invested ~20% of my total portfolio in Opcon. A few weeks ago, my friends and colleagues were laughing. Today, I am laughing. Hopefully, the laughter will last until I exit Opcon. I did not make the move solely based on the numbers of the report. I defined the numbers in the latest report as the receipt, confirming earlier investigations and conclusions around the Opcon activities and the technology.

Let´s dive into the full version of the latest report:

I am not an old timer, so I could relatively easy gather enough of courage to put full trust in the the following statement by the board:

“With an expanding order book, the existing cost savings programme and the plans for the formation of a JV together with Snowman in China together with other activities in China, capacity utilisation is expected to increase, and the Board expects Opcon to report positive earnings for 2014.”

http://www.opcon.se/web/Reports_3.aspx?rid=917250

Now, the full paragraph:

In Fuzhou Snowman has built a completely new factory for production of compressors developed by Opcon. It is estimated that future licensing income from Snowman’s production for the period 2014-2024 could exceed SEK 100 million. In 2013 alone, sales of compressor development to Snowman almost tripled to exceed SEK 30 million. In 2014 Snowman has placed further major development assignments with Opcon. For Opcon, Snowman’s investment and the collaboration that has begun mean that Opcon looks forward to receiving further development assignments from Snowman over a long period within industrial refrigeration compressors, an area in which Opcon is strengthening its capabilities. Furthermore, the trust earned through collaboration means that the companies are now expanding collaboration to include Opcon Powerbox. The purpose is to create a joint venture to develop the Chinese market and create an industrialised manufacturing base for Opcon Powerbox that can also be used by Opcon on other markets. Opcon considers the extension of the collaboration to have great importance and considerable potential. It can have decisive significance for Opcon’s future profitability. Another important part of the current restructuring of Opcon is the extensive changes being made within the bioenergy operation that in recent years has suffered significant losses. In recent years strong measures have been implemented, including cutting the workforce, closing development projects and achieving a new, outsourced production structure. Some of the technology has been licensed with good results.

For some time now a large programme of measures has been implemented in Sweden and abroad with the main emphasis on the bioenergy sector. As a result, Opti Energi AB, Opti Energy Group AB and Opcon Bioenergy AB are being decommissioned and wound up in Sweden. Bioenergy activities are being focused on Saxlund and an increased international focus. The parent company’s operations in Åmål are being closed down completely. The savings programme, which includes reduced personnel costs, reduced cost of external consultants, IT and administration and reduced financing costs, is expected after enlargement to yield annual savings in excess of SEK 30 million compared to 2013, with effects in 2014 expected to exceed SEK 20 million. Over the past one and a half years, major interest-bearing debts have been paid off. The Board notes that although major challenges remain, significant steps have already been taken to reduce costs, and these efforts have begun to show in financial results. In Q2 costs for remuneration to employees were around SEK 3 million lower than last year, while financing costs for the first six months of 2014 were around SEK 7 million lower than the previous year. With an expanding order book, the existing cost savings programme and the plans for the formation of a JV together with Snowman in China together with other activities in China, capacity utilisation is expected to increase, and the Board expects Opcon to report positive earnings for 2014.

My conclusions:

Positive: International focus. This is what should attract new investors (like me). Electricity is cheap in sweden. Creating value from a joint venture with Snowman should be an excellent strategy!



Negative: In the report, I sense that one final and last dilution manouver i.e. (directed) emission might take place in the near futre. If so, I estimate that the dilution factor can be ignored (based on nothing, but gut-feeling).

Update February 21: CESI no longer expects an emission based on the positive numbers in the new 

INTERIM REPORT OCT–DEC 2014 & FINANCIAL STATEMENT JAN–DEC 2014



Very interesting: What strikes me most while reading the full version of the (now old) INTERIM REPORT JANUARY–JUNE 2014 report is the fact that I cannot find any info around the activities in Australia (please correct me if I am wrong). The activities I refer to are potential activities by the Australian partner Enerji.

http://www.enerji.com.au/

This is what makes me really interested. Carnarvon have started to produce waste energy with exceeding expectations and this was announced in the end of 2013.

“On 14 November consent was received to take the system to full operating temperature of 130 degrees Celsius, and heat recovery temperature has been increased with maximum available heat being recovered from the host power station. The limited heat available from the host plant is sufficient for electricity output of around 300 kilowatts. Notably, this output has exceeded expectations in that it was achieved without fine tuning and optimisation of control settings”

http://www.proactiveinvestors.com.au/companies/news/50326/enerji-limited-producing-waste-heat-at-full-capacity-in-carnarvon-western-australia-50326.html

In my opinion, another 6 months without news from Australia is not too long period of time. The Opcon powerbox is not a 5 dollar gadget, perfectly suited for instant capitalization. My understanding of the Opcon Powerbox technology is that it simply delivers. In the near future, it should also be an attractive cost saver in the global context and – in the land down under!

And even more interestingly, why has the Enerji share price recently and suddenly climbed ~100 % ?

http://www.proactiveinvestors.com.au/companies/news/57457/enerji-resources-queried-on-price-rise-57457.html

Enerji is defining in total 5 ongoing projects in Australia : 

  • Pilbara “the Carnarvon pilot plant improvements are taken into consideration, i. e. this should be a very recent project!
  • 3 complex projects involving large industrial facilities in different regions of Australia
  • A larger scale power station project

Enerji also states that the highest priority is to establish commercial growth.

 http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=erj (see attached pdf)

Back to the Snowman Joint venture ambitions:

“Opcon’s contribution to equity will be by a system technology license of its proprietary Opcon Powerbox ORC and WST (West Steam Turbine) technology in the Territory with certain exclusivities in China and parts of Southeast Asia. The JV will be granted exclusive manufacturing and sales rights of the Opcon Powerbox in China and exclusive manufacturing and non-exclusive sales rights for Taiwan, Thailand, Vietnam, Indonesia, Malaysia and North Korea.”

It appears like the long awaited larger orders from Asia soon might be announced. How much will a large order trigger the share price? I have no clue, but my estimate is that the old-timers (the 2010 investor´s) 96% loss will be substantially reduced. The market is global. The potential is huge. I believe the down-side is limited, primarily due to the last years historical plot of the share price combined with the recently improved financial result. I also believe a market cap around 200 mSEK is very low for this company with a mature eco-friendly Powerbox, embraced by China and ready for launch! 

Finally, the last days, insider share purchases have been reported (Mats Gabrielsson 2 million shares and Niklas Johansson 175 million shares)

Best regards, Cutting Edge Science Invest

The author, Cutting Edge Science Invest, is an Opcon share holder. 

Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered.

Cutting Edge Science Invest´s provides personally biased information and at best also “general information and opinions”.

The article/post does not contain professional investment advices.