Think since the co will own the facility, it can also be used for non-government businesses too. With commercialization of space travel, there could be this possibility, right? And think the biggest impact on the co's bottomline would be the judgement in 2008 on its claim for $79.7mil. Wonder if existing shareholders are holding out for that?
The co's interest expenses per quarter is about $1.0mil to $1.2mil which takes down the net operating income. So, by 2009, with the new facility and the savings from cutting down workforce numbers, that could cover interest expenses, and the bottomline would improve.
that would give the co a comfortable zone of $0.456 every year to achieve good results after minusing all expenses/qtr for every financial year. And we are not talking about any other revenues yet.
with present outstanding shares, it works out to about $0.456/share which would be a nice cushion as the total of revenues and cost savings for the co to achieve good results after minusing the expenses per qtr.
There is another aspect to consider here.
1. Pickens is not stupid and he knows that the STS 118 flight is the last one (at this time) for the company.
2. No one in their right mind should count on a lawsuit settlement for the future of the company, especially one that will not even be heard for over another year.
Expect to see a new direction for the company, either with NASA or in other space related businesses. The strength that Pickens brings to the table is the clout and respect in the financial community. He would not have taken this turn around on if he did not think that he could turn it around.
These are just thoughts from the peanut gallery from someone who has watched SPAB for a long time. In the investment world the metric to watch is management, management, management. Clearly the previous management did not know what they were doing. They are gone and a new team is in place. Commercial space companies, no matter how good their technical acumen, are only as good as their next project and the ability to finance it.
Keep these things in mind as you decide whether or not to purchase or hold on to this stock.