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RE: Tiny Stock hitting its stride in a potential $18B market

in #investing7 years ago

How cool is this ! Energy efficiency should be one of the things most of the companies should focus.Why is this company "small" when they have such great ideas ?

Thank you for this nice post = )

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All companies start with an idea and it's really hard to build it into a successful business. I understand they have been around for 20 years and their product cost was high, meaning the design was not optimized for cost and it was costly to manufacture. The founder is a successful entrepreneur and it was being run by someone else. The founder came back, took the company over and his team redesigned the product to reduce the cost and then have manufactured in China and now their profit margins are very high. If my memory serves me right, something like >90% gross profit. Now they have a product with a good price they can sell in the market and earn a high profit, they just need to keep building their global partner network and increase sales. They have built up a small amount of debt. Something like $450,000. I hope in the next year they are able to turn positive earnings and have the cash flow to start paying down the debt. Once they have this under control, there is nothing stopping them from growing and building substantial cash flow.

My guess is if they are successful and get to great cash flow, someone will end up buying them.

I just hope that the ideas won't change if the company gets bought.It's very unique for companies to have products which are that energy efficient. I wonder if they plan to expand the business and maybe make something else which is gonna be as energy efficient as the product they already have.

That's a great point. If we see them expand, then I see them as trying to go it alone without being acquired. We have some clues of this. Last month they released their first consumers product for home air conditioning that reduces energy use by 40%. Imagine if they take off with commercial side this year and then get a second shot with the consumer market.

Honestly, I feel like the competition is gonna become bigger as well. If other big companies see the success of a smaller company than them which made an awesome product they may want to create something similar themselves.How are they going to do that ? Maybe by buying the idea/recipe or maybe they gonna try to engineer something themselves.

In anyway this is a win win for the people because they are getting the biggest advantage imo.

I completely agree and good for investors too. More completion means the market is growing and so is awareness. I'll take whatever the market will give me and I think it will be a good gift:)