My thoughts are negative on this stock. No announcements. No updates. No new clients.
Their new sales unit hasn’t really delivered. The salesmen are good, as is the product. But it is overpriced.
There was also some perceived connection with NEC earlier this year which as gone nowhere.
Having said that….
With the UK contract of 10,000 mobile announced in January 2006 there is a good chance that the stock will turn cash flow positive for the June quarter. Report will probably be released on 31st July.
If the UK client signs up for the other 30,000 mobiles (refer January announcement) this stock will be worth 20 cents.
Assuming a commission of one UK pound per mobile per month that would translate to roughly $A50,000 a month in added revenue in a mainly fixed cost operating environment.
Of course, if the UK client declines this stock will be very hard to get out of.
STE Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
