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EOS - Electro Optic Systems Holdings

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keebab

keebab

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Hey All,

I've been given a homework assingment to do some fundamental research on EOS for an investment group that I attend. I currently collecting financials and broker research and trying to collate the info in order to be able to offer an opinion one way or the other.

I couldn't find any previous topics in the search thread but am interested in peoples opinions on this stock.

EOS has two main focuses: 1. Is the development of military weapon systems one of which is currently deployed in Iraq. 2. Is the ongoing development of a space debris and destruction system to protect orbiting satellites from damage from space junk. From my opinion in terms of the research I have done.

Good Aspects
1: The debt level of the company is extremely low.
2: Levels of both Aus & American gov investment is a positive sign
3: Earnings Per Share are positive for the last three years.

Bad Aspects
1: Currently no dividends paid.
2: Competition from much larger and established companies including Boeing, Lockheed Martin and General Dynamics.
3: Future contracts are not guarunteed and currently listed as speculative.

This is a new task for me so I am enjoying it and would welcome anyone's thoughts or comments.

Cheers

Mick
 
Very interesting little company with blue sky potentual if the ever get their act together. Very lumpy returns however make EOS hard to follow.
 
robusta said:
Very interesting little company with blue sky potentual if the ever get their act together. Very lumpy returns however make EOS hard to follow.
Click to expand...

As keebab noted above:
keebab said:
the ongoing development of a space debris and destruction system to protect orbiting satellites from damage from space junk
Click to expand...

Somehow I think that what they mean by "space junk" is "spy or weapons satellites we don't like". If things ever get James Bondish up there, the sort of weapons system EOS is developing will be very big news.

Both the systems, and their perceived urgency are embryonic at present, but all it takes is for an event ("one of our satellites is missing") and space war will be on in earnest.
 
EOS are quoting with a JV partner on the US govt CROWS (Common Remotely Operated Weapons Station) contract.
It is diffucult to research competitors in this industry and the margins are also very lumpy.
Another one for my watch list.
 
Exciting times:

EOS_annual2014-09-23.gif

On being queried by the ASX about the climb of the last couple of days, EOS responded with a boiler-plate "no reason" except for as previously announced, specifically the big one: EOS and Lockheed Martin enter Space Collaboration Agreement of late August.

Discl: have held, and recently bought & sold at minimal gain - I missed the party. (sigh). Continuing to watch with interest.
 
Purple XS2 said:
Exciting times:
Click to expand...

Agree; the chart has attracted my attention and I had hoped to snap some up on pullback.

EOS w 23-09-14.gif

While assessing whether it might be advisable to "chase", i.e. bid higher than I normally would, I have come across the Auditors' qualification on page 11. Make of it what you want, it's not that uncommon for Auditors covering their backs; I know, I've been an Auditor myself at one stage of my professional life. Still, it keeps me from becoming too exuberant even though the collaboration sounds promising.

Another interesting fact I discovered is a connection to AKP at board level.

AKP w 23-09-14.gif

At this time, I hold neither stock, having traded AKP recently, but taken profit at $13.99.
Keeping my eyes on both.
 
EOS might be approaching support, at around the same time that its sibling AKP does.
Watching both, but currently holding neither.

EOS am 16-10-14.gif
 
In case someone is still awake and looking for space junk :p: - EOS could well benefit from our PM's innovation initiative. Although there is a small gap open down to $1.20, I put some money on the upside.

EOS Fib 07-12-15.png

So far, volume is still low, but the course of trades seems to suggest demand rather than supply.
Once $1.40 is broken, it may attract more technical traders. I am buying...
 
The gap at $1.20 is now well and truly closed; following yesterday's reversal candle, today's gap-up looks more like the completion of a Morning Star, resulting in a break-away gap that may well remain open for a long time.

EOS pm 30-12-15.png

The volume may seem a little low, but at this time of year, that is not unusual.
As long as $1.20 holds, so will I.
 
Taking another look at EOS. Less than 60M shares, directors and staff holding good-sized parcels; that would explain low trading volumes.
Long-term chart shows sustained uptrend, with current resistance at $1.50. That level has seen 3 recent attempts to break through; Often, the 4th attempt - if it comes - turns out to be successful.

EOS 6yrFib Feb 2016.png

As long as support remains weak, I'll stay away; waiting for increased volume suggesting another run towards $1.50.
 
pixel said:
The gap at $1.20 is now well and truly closed; following yesterday's reversal candle, today's gap-up looks more like the completion of a Morning Star, resulting in a break-away gap that may well remain open for a long time.
Click to expand...

PS: The "breakaway" theory turned out to be only short-lived. All recent gaps have been closed.

EOS pm 24-02-16.png
 
Coming off $1 support. I'm ready to get back in. Yes, it's low volume, but that's always been the case.
Note the recently issued director options, exercise price $3. ("I'd like to see that." :D)

EOS am 01-04-16.png
 
Don't anybody take any notice of my ramblings. I'm just talking to myself here :rolleyes:

EOS pm 07-04-16.png

I've been swing-trading up to the obvious resistance; now adding again to be prepared for a not-so-surprising announcement and break of the current Darvas Box.
 
Ha ha, ramble away. EOS is a stock I'll never trade due to its reliance on fickle gov't contracts and low daily volume.

Your chart boxes are truly prodigious, but a little too jaundiced for my tastes. Keep up the good work.
 
peter2 said:
Ha ha, ramble away. EOS is a stock I'll never trade due to its reliance on fickle gov't contracts and low daily volume.

Your chart boxes are truly prodigious, but a little too jaundiced for my tastes. Keep up the good work.
Click to expand...

I don't trust Gov'mints either, but charts are a different matter ;)
Let's see the current resistance at $1.30 break, and $1.50 beckons. Sure, volume is still low and there are a couple of gaps below, but if the lack of volume is caused by retreating supply (as seems to be the case) then I accept the gap as break-away.

EOS n 27-04-16.png

I start buying;
Let's see if the new board member, an Air Marshal, creates enough good will to crack the $1.30 barrier.
 
peter2 said:
Ha ha, ramble away. EOS is a stock I'll never trade due to its reliance on fickle gov't contracts and low daily volume.

Your chart boxes are truly prodigious, but a little too jaundiced for my tastes. Keep up the good work.
Click to expand...

Sometimes it pays to ignore the noise and just focus on the chart. (Sorry if the colours offend some aesthetics. They came as standard with the software and I got used to them.) The chart doesn't tell what attracted the sudden volume-buying. Could be the connection to AKP via the maligned Barts. But as long as the sp rises I don't need to know or care.

EOS n 03-06-16.png
 
pixel said:
Sometimes it pays to ignore the noise and just focus on the chart. (Sorry if the colours offend some aesthetics. They came as standard with the software and I got used to them.) The chart doesn't tell what attracted the sudden volume-buying. Could be the connection to AKP via the maligned Barts. But as long as the sp rises I don't need to know or care.
Click to expand...

May be... but I guess the spurt may have been the result of their AGM which included this quote

EOS expects to be profitable in the first half of 2016, and to hold in excess of $6 million in cash at 30 June 2016.
Click to expand...
 
pixel said:
Agree; the chart has attracted my attention and I had hoped to snap some up on pullback.

While assessing whether it might be advisable to "chase", i.e. bid higher than I normally would, I have come across the Auditors' qualification on page 11. Make of it what you want, it's not that uncommon for Auditors covering their backs; I know, I've been an Auditor myself at one stage of my professional life. Still, it keeps me from becoming too exuberant even though the collaboration sounds promising.

Another interesting fact I discovered is a connection to AKP at board level.
Click to expand...

Its interesting that as a former auditor somebody far more qualified than most to understand company accounts you choose to focus primarily on charts rather than company accounts. It seems to me a curious position and a waste of your talents. Care to explain the choice?
 
Value Hunter said:
Its interesting that as a former auditor somebody far more qualified than most to understand company accounts you choose to focus primarily on charts rather than company accounts. It seems to me a curious position and a waste of your talents. Care to explain the choice?
Click to expand...

That is easy to explain:
For about 5% of my professional life, I have been an IT Auditor.
The other 95% it was IT Development and/or Management.
 
pixel said:
I don't trust Gov'mints either, but charts are a different matter ;)
Let's see the current resistance at $1.30 break, and $1.50 beckons. Sure, volume is still low and there are a couple of gaps below, but if the lack of volume is caused by retreating supply (as seems to be the case) then I accept the gap as break-away.
I start buying;
Let's see if the new board member, an Air Marshal, creates enough good will to crack the $1.30 barrier.
Click to expand...

Nice work pixel.
Good to see the reality making money while the theorists are looking for something in the reports to try to figure out what just happened
:nosympath

(pic of reality vs theory - click to expand)
 

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