Hi major: did you notice the latest news ? Another Defence contract!!

All your questions are good. Let me see if I can respond:

You're right that XTEK's earnings in 2005 ($1.7 m) is not huge for a major supplier of Olympics. From what I know, most firms that are started by ex-police/defence personnel tend to keep it simple, small, and retain full control, rather than go big-bang. It has taken fresh faces and some global events for XTEK to float.

Total shares would come to 51million and at conservative earnings of $2.2 million (easily achievable considering the fact they're getting contracts signed that weren't signalled earlier), it is trading at 2006 P/E of 15. Current P/E is 13.

Global homeland security firms trade at P/E levels of 18-20. That puts XTEK at 76 cents [8D](or) at current earnings and market cap, around 88 cents.

XTEK is not only investing in R&D, but acquiring patents and commercialising the products.

Sales: the only issue for XTEK is that the sales will be lumpy. Large government contracts go through tender boards & RFP processes - lot of lead time, but that is usually factored in the gross margin.[^]

I havent called the company yet to ask about capital raising.

Their prospectus is on their web site (www.xtek.net). and the original owners did not sell down. 12 million (25%) is still around. In fact, the CEO and other staff have voluntarily placed their shares in escrow for a year.

Keep the discussion going. I'll do some financial statement analysis in 3 weeks' time and post more.[8D]

Disc: proud shareholder of XTEK