I was under the impression that KXS is very expensive. Can you please give me an idea of whether you would consider if it is or not and what the numbers tell you?
KXS is certainly not cheap; on a P/E basis it is 108X. But from 2022 to 2024E, EPS is expected to nearly triple. It has a large net cash position and has not issued shares since 2014 the year of its IPO (at $18.00). Its last quarter was solid and it has global customers who may decide on large roll outs at any time. Gross and net margins are not huge (64%/5%) but its leverage to single contracts can change profitability quickly. (5iResearch)