Don't be fooled by Yahoo data. This company has $11,390,768 in short term cash plus they have $45,934,653 in short term T bills, plus they have $32,285,422 that they placed in longer term treasuries. That's a total of $89,610,843. In additional they have $939,960 in restricted cash securing a project that comes back in a year. That's $90,550,803.00 in total cash and no debt. There are 10,210,354 shares outstanding so they have $8.87 a share in cash! The stock price here is ridiculously cheap.
The way I hear it, the purchasing company could buy up OPTT, shut it down cold and pocket a hefty profit. Capitalism at work.
FWIW, presently long but not all that hopeful. This management runs too far behind schedule for my to become ravenous.
bon a petit
I appreciate the conversation.
Late last year I sold a large percentage of my shares at 9.00 during the final run-up. I think OPTT hasn't proven they are worth the cash in the bank at this moment. That being said, it will only take one major partnership to change all that. I also believe that OPTT may be a buyout play, because I believe that OPTT will need to partner with a wind energy to sell floating wind/wave power stations.
Because of the possibility of a news release, or the renewed viability of the PB150 if it can be incorporated with a wind turbine, I think the stock trading 3$ under cash value is a little bit pessimistic.
Last, earnings will steadily increase going forward from the last quarter as backlog has grown and many start-up projects will come on-line as the PB150 is released.... but GOD! loose_buoys has more than a good argument when he mocks OPTT management and their far too aggressive statements which greatly overstate their potential regarding expeditions product development.
You keep highlighting the cash in OPTT's most recent balance sheet. Why do you believe this company should not trade below their current cash? Even with the most optimistic estimates, this company is still a long way from profitability.
What matters is the condition of the balance sheet when this company has a sustainable positive cash flow. When will it be and how much cash will be left at that time?
They burned $5.7 million over the last 6 months. At that rate, and figuring no new revenues, they would still have $6.64 in cash two years from now. That's a buck above where we are now. Do you really believe nothing will happen over the next 2 years? This is a nobrainer here.
The balance sheet shows a shift of $20,000,000 from the short term investments & cash to long term investments. They didn't mention anything about that in the quarterly earnings webcast.
I suspect that they chose to put it into a treasury note since the treasury bills are currently paying no interest. Can anyone here confirm what their $20,000,000 long term investment is?