I've held these for years, and been disappointed for years, but...

I've held these for years, and been disappointed for years, but it seems like something has to happen in 2007. There's too many things in the pipeline for there not to be positive announcements in the coming few months. According to the latest report, Singapore has already signed up with Microsoft, MXL is invited to be a major player, and all that remains is for final negotiations. Then there's the statewide contracts which were expected to be announced last year. It's hard to believe they won't get finalised this year. Winning the full NZ schools contract would put the value of MXL at something like 12c. There are expected to be announcements on all these tenders and more this year. I'm skeptical about the timing, because of the delays last year, but it's very hard to believe that there won't be several big announcements during this year.

Then lets look at the strength of MXL share holders. There's been a massive sell off recently, but considering how resilient the price was during "traumatic tuesday" (wednesday here) last week and the lack of interest in selling over the last few days, I'd say that all the people who bought at the highs after the Microsoft announcement have sold out, and we're left with mostly people who believe, like me, in the positive prospects of the company this year. There's only 3 million shares in the ask queue up to 10 cents. That's only $300 000, a drop in the ASX ocean. There's no guarantee that things will go well, but the stock certainly seems primed for a big move upwards if they do.

One thing I've learned from watching MXL over 4-5 years is that the best time to buy is when it seems dead. That's today in my opinion. You can almost see the spinifex grass tumbling across the market depth... :)

Anyway, that's my view of the stock. I tell all my friends to stear clear of Mxl because it's highly risky and not for the amateur investor. As such, this is not advice or a recommendation, just my thoughts and opinions, which I've probably been motivated to share because holding as many as I do, it's hard to feel good about it on a day like today, even though I know in my head that there's a lot of potential to get a nice return this year, even if it is just from selling short term excitement from upcoming announcements.