I couldn't think of any other reason why they decide to do reverse split.
they have already booked 5mil revenue to date, that's nearly 90% of its last full year revenue.
they should make half mil each month from now on just from ordinary business, that's 8mil full year. plus some tax rebate etc, it should give them some 700-1mil net profit without any tax.
then from those big ticket short term prospects, from my conversation with the management, out of that 26mil plus they are talking about, 4,5 mil should be already in the bag. they probably will at least have half of that UAV projection. so minimum we are talking about 10mil revenue, that's 5mil profit.
so all up 18mil full year sale, 5-6mil net profit without any tax. chairman spent 500k@1c few years ago, he probably wanted this money back, that's about 10c per share, or 2mil cash out of 7mil in the bank. that's my prediction.
XTE Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
