Introducing Addvalue Technologies Ltd.
OMG many GCBs, Mercedes and limbs have been lost in this lousy counter. Honestly, I am one of those.
This is my new thesis. It is due to the exploding space industry.
Around 2010s, Addvalue patented a way for satellites to communicate with each other. On flight, satellites can be out of phase, ie the satellite is on the other side of the globe.
If there is a change of plans and the satellite is out of range, then all one can do is wait for another day to excute the plan. A great waste of resources. This technology enables this new plan to be relaid to the said staellite via other satellites. This simple procedure ensures a more flexible flight plan and a robust mission of the flight.
Sounds interesting, but the problem with this technology is that it is ahead of time. Space industry is huge but with very few players. There is just no general demand. As such, Addvalue is losing money by the days. But last Q, Addvalue turned profitable..... finally after a long time. Accumulated debts reached 80M. Addvalue is drowning.... but revenue is finally accelerating last year. Cash flow is improving. As sales improves, debts will not be a problem.
In a recent anouncement, Addvalue claims many repeat orders from an unnamed North American client. Disclaimer, this is just my guess. Now, which organisation requires sucg services but want to be secretive on the disclosure? Not Elon Musk, Space X is not ready yet. My wildest guess.... the USA goverment and/or its various apparatus.
Woooow, if this is true, then this technology must be very good and secured..... worth lots of money. Take a look at Redcat and Rewire. A better comparison will be AST Spacemobile. They are listed in the USA, look at their mkt cap and they are all not profitable. Granted it is not a straight comparison, but they are all in the space ecosystem. Folks let your imagination run wild.... Addvalue mkt cap is only a miserable 36M, only a micro cap.
What is th Total Addressable Market? I think nobody knows. All we know is revenue is accelerating. Addvalue claims a USD8.8M of sales for only the months of Nov and Dec. Not bad guys, but watch out on the cost of sales.
Technically, the share price has been sitting aroung 1 cent (miserable). Look like a strong support. Hopefully, one day Addvalue will have a mkt cap of many billions.
Disclaimer, I own shares of Addvalue. Have a prosperous CNY.
Huat Ah................
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