I've been pouring over ET's latest filing and this has convinced me that this is a good investment.
9 month period
Net cash used in Investing Activities = $4.7M
Net cash used in Financing Activies = $4.9M (paying off debt)
Cash start of 2012 = $12.7M
Cash end of Sept 2012 = $10.6M
Debt end of Sept 2012 = $1.5M
The company spent $9.6M paying off debt and investing capital, while its cash position only decreased $2.1M. So there is a golden nugget of $7.5 hidden between the lines not necessarily reflected on the income statement. This is an intangible $0.25/eps just for the first 9 months of the year.We will see the company's investment payoff next year.
Assuming break even on operations outside of Naga, Naga is generating close to $1M in net cash for the company currently being spent on paying off debt and investing to expand business. At the start of 2013, the company will be debt free while the Naga contract is still worth about $38M til end of Feb 2016, more than half of the current market cap.
Once debt is paid off and new projects start contributing, we will see an increase in EPS. Its good to be an investor now.