After watching SKG for a few months, and at first a bit...

After watching SKG for a few months, and at first a bit skeptical of the technology, i think now it is definately a buy.

SKG has two main parts. A wireless broadband division ( ie where you can sit down at an airport or McDonalds and log onto the net with your laptop without hooking in), and a home automation division.

Currently trading at 7 cents. Market Capitalization of $12 million ( according to Comsec).

Been around for only a few years as a high tech company and just turned cashflow positive in the last two quarters. Management have great track record.

In last quarter it had positive cashflow of $66 000 so annualized based on no growth to $264 000. Now this doesn't sound like much but it is only a $12 million dollar company. And if you then factor in the growth rate ( discussed below), it should add up to quite a lot in a few years.

Growth...Customer receipts grew by 610 % last year.
Cash balance has grown 61% to 1.3 million over the last year. Minutes of usage grew to 5 million in the last quarter, up 10 % from the previous.

Home automation division had a better than expected XMAs as well and profits higher then expected ( forget figures..read thieit announcements).

Risk : -my initial doubts concerned the security of the wireless broadband and the consolidation within that industry under umbrellas like GRIC. On balance, it seems like SKG is progressing fast enough to be a player in the consolidation and the security issue is something that seems to be not a problem based on the increased usage.

So all in all, financials look good, growth looks good, mamangement drive looks fantastic. I think on a risk/reward basis its a good place to look to hitech if reducing weight in mining or banks.