What's with the selloff?, page-123

I'm still inclined to give management the benefit of the doubt as it works out how to juggle 4 business units, plus a US subsidiary. These units add up to a very novel mix of products/markets/strategies/regulatory processes, especially between the 2 broad groupings of security and medical imaging. But even within the former, there's a big difference between airport baggage security and bomb disposal out in the field.

Plus, the inflation, supply chain and interest rate challenges are major...

Not to mention the fiscal challenges for airlines and airports right now, which are likely to drag out for some time....

My hope is that the marketing side of things ramps up. This is lacking. Peter Rowland sounded defensive during the investor conference call, when a question was raised about this. All he committed to was the hiring of a "Corporate Communications Director". We'll see.

Other reddish flags:

$1.5M of sales 1H22. The full year may come in under the $3.771M sales FY21. It was $4.251M in FY20 (height of Covid-related orders I think).

Pre-Covid, FY19 came in at $1.931M, so this year's will probably be on track to outpace the pre-Covid baseline.

We're burning cash YoY, really only saved by govt subsidies and 2x cap raises. We're cash flow negative again this first half, down by $4.475M in Sept quarter and by $5.716M in the last quarter.

We really need to convert the interest received at RSNA into actual contracts. The mobile x-rays are our core product for now, being built and shipped right now. Having a dedicated business unit may help achieve this focus which, hopefully, can generate profits for the whole company, to bolster the development of the other lines.

Also, 2 updates missing in the latest quarterly:
- No mention of the door to door mobile x-ray partnership previously mentioned
- Ditto the foray into veterinary imaging

Nonetheless, MX1 really does have a unique array of world-class products that are useful for our health and security. Developing, marketing and obtaining regulatory approval for such a complex and novel array is undoubtedly a huge challenge. Some may say, a brave gamble. But that's what innovation is.