Originally Posted by
silu
I've done surprisingly well trading this micro cap despite being an illiquid stock. Never pushing big volumes to wipe out whole lines just nibbling along the line. Have recently topped up at 26c and 38c to ride a little wave after it's recent big contract wins and good annual result announcement.
Revenue more than doubled
Gross margin increased to 47%
NPAT of $8.2m
Reasons why I will hold for the foreseeable future:
Company will announce capital management strategy as they have lots of cash
They will pay down all debt in 2023
25m of tax losses not yet realized
Increased spending on defense by Australia, Japan, Europe etc
77% of 2022 revenue ($45m) already booked in orders for 2023
Pipeline of leads worth over $100m
All that for a MC of $41m (at 40.5c). Yes this won't trade at standard PE multiples as it doesn't really have recurring revenue streams but with prudent capital management and big contract wins there are some nice gains to be made in my view.