Price Target Increase for EnWave After Outstanding Financial Progress
Until recently, food processing companies had to choose between minimizing their drying costs or producing premium dried products. Thanks to EnWave Corporation’s (TSXV:ENW – $1.00 CAD & OTC:NWVCF – $0.84 USD) Radiant Energy Vacuum (REV) technology, companies no longer have to choose, as they’re able to produce high-value dried products at a much lower cost.
More and more companies are benefitting from this technology and as a result, in the second quarter, ended March 31, 2015, EnWave, for the first time in its history, reported a net income (including foreign exchange translation). Sales for the quarter were $5.4 million, up more than tenfold compared with the same period last year. Income for the quarter was $23,552 versus a loss of $2,177,847 in the second quarter of fiscal year 2014. And it certainly doesn’t stop there.
During the past few weeks, EnWave started up three commercial REV machines that will soon generate royalties. The first unit was installed at Umland LLC, which sells high kosher cheese snacks, the second at Gay Lea, the second largest dairy co-operative in Canada and the third one at Natural Nutrition, a Chilean fruit processor.
At Bonduelle, a global leader in the production of vegetables, a 120kW quantaREV commercial unit is scheduled to come online very shortly. This will generate an attractive production-based royalty for EnWave. If successful, several more units could be ordered by Bonduelle.
A 100kW commercial nutraREV unit is being installed at Hormel Foods Corporation, a multinational manufacturer and marketer of high-quality, brand-name food and meat products. Once operational, royalties should vary between $200,000 and $400,000 per year at full utilization.
Moreover, the long awaited launch of Cheddar and Gouda Moon Cheese snacks, as part of a sixteen week long trial program at 3,500 locations of a major coffee chain in the United States is set to begin later this month.
As a result of all these positive developments, we have increased the price target for EnWave’s shares to $3.15, up 13% compared to our previous report.
|Download the second quarter 2015 EnWave Corp. Company Report.|
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