Last quarterly report says that cumulative revenues from the contract are expected to be up to 110 million. But that is over the life of the contract, right? 15 years? So its less then 10 million per year, and the capitalization is already pushing 300 million. Am I missing anything here?
No, and that is why the stock did not react much when they announced that contract a few weeks back. It is one of what will be many small contracts and several much large ones. Keep in mind though, that even this "small" contract will produce enough to run the whole company for a couple of months. Six of so of these and the company is in the black. Throw in a few big ones worth 100m per year each and we are looking at a stock price in the 20s. The one they are talking about announcing in New York in a couple of weeks is one such large contract, and that is why the stock has popped, well that combined with them saying they will not dilute any further. Hold on to your shares, we're going much much higher.
$110M contract doesn't mean anything if you can't generate a GM on the product you are building or it will only increase the current burn rate. 3.5 years and UNIS as yet to show whether they can produce anything with a GM