I see it the same way. I'm accumulating at these levels and wondering why the stock does not trade at 2 or more bucks already. I also expect a nice profit in Q1 due to the carbon offset credits. And going into the year, numbers should improve significantly quarter by quarter. With the new contracts we are heading to $150+ million in full year revenues.
More customers and new products in development and in pipeline, accordingly.
(they win 1-2 new customers/quarter)
They will start tapering the R&D expenditures starting in Q1 2017 (June 2016 quarter).
Q3 (the recent Dec quarter) traditionally the weakest quarter. Q1 and Q2 the strongest quarters. Therefore, revenue improvement ahead...
Margins of 40% are already very promising! I would expect a return to profitability or at least break-even in Q1 fiscal 2017 (the June 2016 calendar quarter) with revenues likely approaching $30 million in the second quarter of fiscal 2017 (the September 2016 quarter).
Market Cap just $65 million - really cheap given the cash position of nearly $35 million.
I give it the rating "long term accumulate" with a 6-month price target of $1.50 and a 12-month target of $2.50.
$1.6 million in carbon offsets expected in "early 2016". This would translate into approximately 25 cents/share. ARCA should report a very strong Q1, given the carbon offsets and the influx of new recycling program business due to the bancruptcy of its former largest competitor JACO Environmental in Nov 2015.