KSX should resume its upmove on a break of the 4.3 to 4.4c level. We will then see it test the recent highs at 6c.
Based on fundamentals, the Company is gearing up towards full commercialisation of the wheezometer and associated products with sales commencing in Europe and Asia-Pacific. FDA approval in the U.S. should not be too far away.
Over the next 6 months we should see worldwide sales commence in ernest and I would expect a re-rating of this stock in the near future. It is very difficult to guestimate future sales and profit margins. But if they achieve in calendar 2010 (or fiscal 2010/11) sales of 200,000 units at a profit margin of $60, that is $12 million gross profit for starters.
Even at a 10c share price (market cap of $52 million)I would expect this Company to be taken over by one of the majors sooner or later.
KSX Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
