The drone and re-seller business will provide enough margin to pay the operating costs of the business - I would have thought that adding the XT Atlas video capability to the drones would have been adding some extra margin.
If the XT Clave business gets off the ground during the next six months with some decent orders then there will be our real profit margin - you don't have to earn megabucks when your market cap is $17.5mil as a five cent dividend on 40.5mil shares issued only costs around $2mil.
The CEO will have earnt his salary if these decent orders come to fruition. I think they have now boxed themselves into a corner with shareholder communications that have stated that this will all happen by June next year and there are also promises about European and Australian orders within the next two to three months. Looking forward to an update from the AGM as recent announcements have sounded good.
The stock is probably classed by the market as a 'tech' stock which is not exactly the hot segment at the moment and also as a 'growth' stock whereas the market currently prefers solid well-established businesses. You can't blame Management for the current lack of interest in the stock and I would prefer that the CEO be out there selling and not trying to promote the Company as I think he realises that that would be like flogging a dead horse at the moment and a complete waste of time.
XTE Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
