HCL HighCom Limited (Prev XTEK Ltd (XTE)

[silu]

Regal ceased to be a substantial holder last week - https://cdn-api.markitdigital.com/ap...df02a206a39ff4

Still got a a bit more than 4m shares left so I assume share price will be depressed at least for another 2 months. Thinking of adding more at these levels.

[percy]

https://cdn-api.markitdigital.com/ap...df02a206a39ff4

[Sideshow Bob]

https://cdn-api.markitdigital.com/ap...df02a206a39ff4

Interesting update, thanks for sharing Percy.

Alot of positives, but still trading not too far off its 12 month low.

[percy]

Interesting update, thanks for sharing Percy.

Alot of positives, but still trading not too far off its 12 month low.

The market seems to know something I do not know.
As far as I can see it is a well managed good company in a growth sector and has excellent fundamentals.?

[Sideshow Bob]

The market seems to know something I do not know.
As far as I can see it is a well managed good company in a growth sector and has excellent fundamentals.?

It does seem that way Percy. Given the FY23 forecast, net earnings should be around 6cps, so PE less than 7. Company has a good pipeline of work, and talk about the tailwinds in the sector.

As Silu points out, Regal still have 4m more shares and presumably will divest these, but see that they've sold more than 4m in the last 3 months but also have been buying and selling along the way.

https://simplywall.st/stocks/au/capi...ares/ownership

Might be like 2CC, selling volumes ease and then it takes off......maybe.

[Rawz]

Has anyone done any work on the pipeline of potential orders vs future sales?

Just notice it seems to have steadily increased from $100m to $200m based on company announcements. IKE used to disclose closed contracts and you could work out what future revenue was based on the historical numbers. Wonder if possible to do here?

Not a holder but looks like a good opportunity here with the big shareholder
Selling down . Once that stops and new big contracts are announced it could double in price quite quickly.

I’ve never invested in a company that has lumpy sales so am a little nervous but did a quick search and the military helmet market alone is worth US$2 billion a year so surely plenty of recurring revenue to be had

[X-men]

What happens if the Russian war end soon?

[percy]

There is more to XTE than just supplying product to Ukraine military,although that was a very large contract..
BALLISTICS DIVISION (HIGHCOM)
Focused on designing, manufacturing, and supplying global
military, law enforcement, and first responder customers with
world-class, advanced personal protection ballistic products and
solutions for:
• Body Armour
• Ballistic Helmets
• Composite Structures
TECHNOLOGY DIVISION
Focused on manufacturing and supplying global Defence and
Security Agencies with world-leading Australian-made and
globally sourced:
• Systems – UAVs & UGVs solutions
• Sensors – Detection & Optical Payloads
• Software – 3D Mapping & Modelling SW
– Tactical Situational Awareness SW
• Support – System Integration, Training, & Service Support

[Rawz]

This is about to rocket I reckon

[Rawz]

The event is major fund selling down

The fundamentals is growing business trading at historic lows.

Could be a 2CC 100% in a few months type situation

Just my thoughts