It's been a while, page-49

Just wondering what you are basing your valuation on if you say it's undervalued?

In my view my investment is based on the fact that if they achieve the medium term target of $100m in revenue then XTE should have a 12-15% net margin (maybe as high as 20%) with a 10-12 x PE ratio (potentially more in the current macro environment). That gives the company a potential future value in the $120m to $180m range (current market cap circa $46.5m). All of this is within the realm of reality with current capital, strategy and products but a lot is riding on success with the DoD in the current trials and the XTClave machines being able to generate the revenues they are supposed to.

The lack of liquidity is good in my view if you believe in your investment thesis as when good news comes it will drive price action north quickly. Still a lot to be proven and delivered on by management so we await the next market update and hopefully some material news on the Adelaide plant and the US DoD trial in the near future.