SCT 17.5% 9.9¢ scout security limited

I'm not expert by any means but everything seems to be pointing...

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    I'm not expert by any means but everything seems to be pointing towards cash flow positive soon. Even if they have zero revenue increase this quarter, if they hit their expense target of 966K then they are across the line. But with a hardware company it can be tricky as a large order, which is a good thing of course, may throw off that target depending on when the check is sent.

    But overall I'm feeling pretty good about this one. They have three major reseller partners (Zego, Prosegur, and Stanley Black & Decker). Recurring revenue from Zego starts this current quarter. They seem to have a good relationship with both Amazon (who are also an investor in Scout) and Walmart, which are the two major online retailers in the US.

    The share price is definitely frustrating but I think it's a combination of lack of market exposure (partially due to the product not being sold in Australia) and early investors cashing out at what is probably a reasonable profit even at these prices. But I don't see any red flags. Heck there aren't even any down-rampers here. I'd kinda like one to stop by and let us know if we are missing anything. Cash balance could always be higher but with a hardware company they pump extra cash into product, so that doesn't concern me. I know you can pick almost any stock and someone will say "just have patience" but this might be a prime example of that. I think we can all agree the market cap seems ridiculously low, so you'd think the share price will have to catch up eventually.

    Bottom line is I think the company itself is doing really well. The share price though, that I can't explain and I wouldn't want to wager any guesses on what it might do. My personal opinion is that it's under-priced so I bought a chunk ranging from 11.5c-13c.

    The company's focus should be on growing the company, and it sounds like it is, but perhaps once they hit cash flow positive they can take a breath and then put some time and funds towards market exposure.
 
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