Ann: XTEK Limited H1 FY 23 Results - Investor Update, page-57

Yes, it's understandable why the market is thinking this way. Operationally, it's much lower risk with the inventory build for overseas markets. They are now outgrowing their build to order model and moving to funding inventory runway for faster deliveries. Their main Highcom products sell for about 3x the cost of goods. Inventory is about $25m, so that's about $75m of future revenue it can generate. $35m of that is in contracts currently being worked on and soon invoiced, leaving $40m that they can realise. Like I said, it's a growing pain to spend the money building up inventory. It's like a piggy bank for them. And they can monetise it quickly if they ended up getting desperate with discounts. At 3x the cost of inventory, there's a fair bit of margin to work with.

Of course the market won't see it like this, and that's not so bad for me, seeing as I am soon going to be doubling my position, just not sure when to jump in....