XTRA has technology to detect concealed weapons, so unfortunately this is a growing market. It has $9.7M cash. In addition to its small size and general risks, the main issue we think right now is valuation. Market cap is already $150M. It has negative cash flow and is losing money, with more losses expected. The revenue base is only expected to be $13M this year, so it is already more than 10X revenue. Revenue is expected to double next year, but that still doesn't make it that cheap for a small cap. It only has two analysts covering it and is still quite unknown. MSGS (Madison Square Gardens) owns 16% and we do like that endorsement. We like its other partnerships. If it can translate orders into profits, or at least positive cash flow, we think investors will start paying more attention.
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