Of these recently included companies, one is outstanding by the simplicity of their business and ridiculous valuation considering demand for their products. Israeli $MTEK has developed (since 2008) hardware and software for mission critical real-time video streaming and analysis.
$MTEK products used in commercial/military drones, aerial/ground/maritime autonomous vehicles, observation systems, armored vehicles, aircrafts, etc., law enforcement, and covert installations, as well as worn by humans or animals to aid in intelligence gathering, surveillance.
Main customers are Elbit ( $ESLT) and Rafael (government owned), both top military Israeli companies.
But recent single $0.23M order from UK reseller is pointing to high demand from different countries that may not want to buy directly from $MTEK.
But recent single $0.23M order from UK reseller is pointing to high demand from different countries that may not want to buy directly from $MTEK.
We see rising defense budgets of NATO countries and demand for $MTEK products is undoubtful.
As a validation point for $MTEK products, their video recording and streaming device was used in 2019 in Be-Resheet space satellite during Israeli mission to land on the moon.
As a validation point for $MTEK products, their video recording and streaming device was used in 2019 in Be-Resheet space satellite during Israeli mission to land on the moon.
It is worth mentioning that CEO (and major owner) is a seasonal executive, who worked in defense sector for tens of years. And the chairman of $MTEK board is a former (retired in 2018) CEO and President of IAI, the largest Israeli aerospace company (revenues $5.5B, backlog $11B).
Speaking of financials, $MTEK had to grow revenues around 100% in 2021. Operation losses in 1H21 were just $70K. Most likely $MTEK will continue to be unprofitable because as they said in the prospectus most of the raised cash will be used for expanding marketing efforts.
They do have developed products, they needed IPO money to penetrate US and other markets.
All written, obviously, is not a recommendation to buy $MTEK. It is just an example of how market conditions created a situation when new IPOs are priced at zero value for their business.
All written, obviously, is not a recommendation to buy $MTEK. It is just an example of how market conditions created a situation when new IPOs are priced at zero value for their business.
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