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 Originally Posted by Joshuatree
Yes I've just watched a video withChairman and alan kohler . 47%(more with their own products) margins and a $200 million Drone contract they are chasing some or all of.
The AUD:USD exchange rate is possibly not in their favour on this. And don't hold your breath for JP129 ... although the ongoing picture is for greater use of UAV's.
Here's some fun reads on UAV's in the Aussie defence force:
http://www.academia.edu/7391098/Aust...t_Aircraft_Age
http://aaus.org.au/webdev/wp-content...esentation.pdf
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Haha interesting read Lizard - I'm not invested but enjoyed the pilottranscripts from when they crashed the UAV's in the second link. (who is sitting at the base and does not get injured but I'm sure gets a lot of s*#t from everyone)
"Where the hell is — where is the runway? It’s all
the way over here. I overshot. Oh, ****. I think we
lost the engine. Oh, ****, oh damn, oh my God,
what is that? . . . What was all that stuff I just hit?”
“What’s going on? Hang on! Hang on!. . . . Uh-oh!
****! It’s spinning! . . . Okay, I think it just fell out of
the sky.”
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XTE is the lumpiest . The next half is going to be a monster.This half didn't touch the sides of the anaconda.
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Thanks to Ben2010 for this research note.S/P up re 17% to 45c today.(maybe in response to this )
Game of Drones: ASX Stock Set for Aerial Uplift?
Game of Drones: ASX Stock Set for Aerial Uplift?
The summer holidays are just around the corner and it’s almost time to fill the stocking, crack open a beer, wine or soft drink, or just reward yourself with a nifty little toy for all the hard work you’ve put in during the year.
And one of the prized possessions on your shopping list may well be a drone.
But beyond being a great idea for a Christmas present, the main cash to be made from drones is in supplying to the emergency and first responder market.
The global market for Unmanned Aircraft Systems (UAS) – the technical term for drones – is estimated to grow from US$6.76BN in 2014 to US$10.57BN by 2020.
One stock that has just caught our attention is a relatively unknown ASX-listed technology company selling not only into the drone market, but also very useful products for military and law enforcement agencies, including the Australian Defence Force.
This company is currently generating revenue right now from its comprehensive range of military equipment and products – in fact revenue doubled last FY alone.
But its latest product could be a game changer…
This Company’s latest tech generates detailed aerial imagery in real time from a drone, and superimposes it onto existing maps such as Google Maps.
Game of Drones: ASX Stock Set for Aerial Uplift?
This company’s latest product may soon be a must have for drones in use by government, law enforcement, and first responder agencies – and consequently has significant commercial potential.
Beside the drone technology, the company was awarded a contract by the US Department of Defence, which will see its advanced lightweight hard armour plates rigorously tested.
If this company satisfies the US DoD that its armour plates are up to scratch, this could rapidly open the gates on large defence contracts.
Validation from the US DoD would also validate this tech in the wider, global market…
The Company is currently valued at just $8.25M and is tightly held – and given there are major catalysts on the horizon, this stock could move quickly.
At the same time, this is a small tech company and a speculative stock – please do your own research before considering as an investment.
So with over $12M in annual sales, $10M in equity funding if needed, and zero debt, we introduce you to XTE
Game of Drones: ASX Stock Set for Aerial Uplift?
XTEK Ltd (ASX:XTE) is a small but thriving defence contractor that secured over $12M worth of sales last year. The company, founded in 1978 and listed in 2005, has quietly gone about developing a range of products for military and security purposes.
XTE doubled its revenue from FY14 to FY15.
Beyond its existing sales, after years of intensive research and development (R&D), XTE has produced two distinctive and cutting-edge innovations:
- XTclaveTM (body armour), and;
- XTatlasTM (contextual, real time video for drones) which should give it a much larger springboard to bounce into the global $2.1TN defence industry.
This company is also just months away from finding out whether the US Department of Defence (DoD) would like to embrace its manufacturing technology for the production of future extra light and strong body armour.
So far we’ve only concentrated mainly on the drones aspect to this company, but a potential armour deal with the US DoD…
…could unlock a huge contract into what is a very large American market.
The US has one of the highest spending military bodies in the world, spending over $600BN per year – and what they buy often has an impact on the wider market.
This news could be a major catalyst for XTE.
In the coming months and after an intense two-year trial period, the US Armed Forces will finally see first-hand the benefits of XTE’s product.
Game of Drones: ASX Stock Set for Aerial Uplift?
Any US deal will come on the back of a recent $7.7M Australian Defence Force (ADF) purchase order and the sale of its broader products.
Imagine what XTE could do if it were to supply the US military – remember they spend over $600BN per year…
Having said that, there is no absolute guarantee that XTE can unlock significant revenue in a US deal – at this stage the company is participating in development and testing work only.
Before we get to ahead of ourselves, let’s take a look at XTE’s performance over the past four years
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Took profits late today, mixed messages announcements wise.
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Over the last few months I've been buying XTE between 30-36c range after a change of management in October. They had a very disappointing 2015/16 year but they have already doubled revenue in 2016/17. Australian government looks to increase Homeland Security spending to 2% of GDP by 2022. One of their innovative products XTclave has caught my eye a patented process to create lightweight ballistic protection laminates. Talking to ex soldiers body armour is stiff and uncomfortable to wear. This technology allows stronger, lighter and complex shaped parts to be manufactured. The US DoD is in a testing programme using this technology.
AFR article from 28th November about XTclave: http://www.afr.com/news/special-repo...0161124-gsxbfp
Link to latest AGM presentation 30th November 2016: http://www.xtek.net/assets/Uploads/S...esentation.pdf
It's a very thinly traded stock with a current MC of $10mil.
Last edited by silu; 02-12-2016 at 09:26 AM.
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Bringing this up towards the top as directors have been buying of late, they have announced ballistic armour that is up to 30% lighter and some smaller Defence Force contracts. But most importantly hopefully soon we find out whether Xtek was successful in landing the Land 129 contract worth to be at least $100m. I continue to hold because if this flys it will fly. If not the downside is limited as I cannot see how Land 129 has been incorporated in any way in the SP.
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Long Member
Hi Silu, I've followed this for a couple years but never pulled the trigger (no pun intended). With a large bulk of the revenue booked in the second half, you think XTEK are close to profitability for the FY? They don't have much cash in the bank (~250k) as of december and whilst inventories are close to 1mill, and there are some decent receivables, it wouldn't take much to need a CR?
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