The more I think about it, Norris (IMHO) just gave another strong sign at the conference- 1. laying out how PRC delivers signed contracts, and 2. restated that in all the PRC bids, FTEK is in on 4 out of 5 architect bids. He obviously cannot say he has an order till he receives the signed copy (which comes @6 weeks AFTER they start installation). Very strong inferences. I think we're in for more good news within a few weeks.
I agree. Some good news on the homefront in the form of APC contracts from American utility companies will generate much more interest in the stock. Investors are on the sidelines waiting for FTEK to show some solid momentum before they make a commitment. It will be interesting to see what happens when the CAIR regs are finalized. That alone should move the stock upwards, but FTEK will need some contract award announcements soon after to keep the pps from eroding. $100 mil in new contracts would equate to an EPS of about $1.80 and a stock price of about $20. That would be an excellent start.
I was getting nervous about not seeing any APC contracts for the games in March thus far. But the 6 week delay in getting the paper contract makes me less nervous. There also was a very brief comment concerning installation - 3 mos. for APC, if I caught the context correctly. So we should be getting contracts through June or July for the games, considering the installation time and the 6 week delay for the paper.
One thing that Norris said that got my attention was that FTEK was awarded over $50 mil in contracts during the last 4 months of 07, before the issues with CAIR essentially stopped everything. With permanent regulations coming into to place this year (I hope), it would be logical to expect a significant number of new contract awards later this year and in 2011. FTEK may even be more competitive now, since they claim to have improved their APC technology. The profit margin of over 45% means that they would be making a lot of money in a very short period of time once utilities begin ordering work to conform to the new regs. With increased profit, the EPS ratio would be very good since there are only 25 mil shares outstanding. This would have a very positive effect on the price per share. The APC work would give them an avenue to sell the fuel chem program to their clients and build up that side of the business. Norris should have a good feel for the utility market since he was a high level executive at Duke energy and most likely has a number of contacts who are senior executives in the industry.
JUST ONCE----Can anything ever be cut and dry with this Company. I mean "FTEK today signed a contract", instead of we " Might already be working on installation" What kind of business practice is this crap. You cannot tell me that GE doesn't have a contract when they agree to sell 15 jet engines to PRC. Unnder is Crap business practice GE is expected to deliver the engines and then sign the contracts. How can any Business man be expected to explain this to his shareholders.