Well acquisitions of complimentary technology and areas that Xped could use is great. But a fine balance between getting their initial product out there and bolting on countless acquisitions before a MOU results in the button push to go ahead.
If this is indeed their path to greatness - then sure, but I would then argue that akin to a miner in development phase, a lot of investors will probably see just as significant returns plonking back in once the dust has settled and they've done all their dilution, acquisitions and the like and have scored a revenue deal.
The biggest fear is to fund all this the share price and dilution will continue on its current trajectory.
It's a much of a muchness isn't it - in part: market cap is tied to profits - just a matter of timing and when this is realised'. In a sense it is all kind of the same picture but at different angles. The fact that the performance is "revenue" and not "profit" is the main issue.
It would be a lot harder to hit 125 million market cap for performance bonuses than it is to hit revenue targets. Which is the biggest issue. ANd what now - if the $25million placement involves funding an acquisition of another "JCT" like company - they could acquire that additional 1.5 m revenue easily. It does nothing in terms of indicate profits, or shareholder return, but it does line their pockets.
I still disagree that having revenue targets is in the best interests. There are far more cases to argue that it cushions the recipients more than shareholders interests.
I challenge this position with a profit target - net cashflow, something other than revenue. Until then I am not convinced it is entirely great for the shareholders and their return.
XPE Price at posting:
3.2¢ Sentiment: None Disclosure: Not Held
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