qtl , page-2

Word on the street is that QTL will announce a profit for Q2 in the soon to be released "Activities Report"

This might explain why QTL hasn't done a complete retrace after the recent spike...as they typically do.

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The problem with QTL has always been profits...or lack thereof. We read in their reports about "increasing sales" and "increasing income" but never read about "increasing profit".

If they do announce a reasonable profit for the current quarter it would mark a significant turn-around...I would suggest however, unless the profit figures are substantial, the market will need to see another profit in Q3 before a re-rating would be in order.

Ozemail, Harvey Norman, iPrimus and iHug, with whom QTL have various sales/distribution agreements, are all reporting strong growth in broadband sales/connections...which ultimately should have an impact on QTL. In addition, the Chinese supply agreement, which appears to be gaining momentum, should also start adding to the bottom line.

And finally, if they can achieve the announced 35% reduction in operating costs...Quadtel's current market cap of just $5m begins to look a little under-valued.

The real fear of Quadtel's long term profitability has seen their shares trading near all time lows. If this doubt were to be removed and if the potential of their exposure to the Chinese market were to be fully realised, a substantial share price rise would not be out of the question.

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I sold the last of my QTL shares last year, but held onto my options...just in case. Until about a week ago I was resigned to the fact that they would expire well & truly "out of the money". The proposed "options renewal" with an exercise price of just 2.25 cents, in my opinion, is a pretty good deal for the long suffering holders.

Well done Quadtel!

Cheers!



Not advice...just an opinion.