Post by
hintonkid on Jul 25, 2019 2:19pm
Company news release of today.
The company is out with a new news release, today, that indicated that they were awarded a $370,000.00 British Pound Stirling extension to their Madagascar small vessel tracking agreement. See full details in the news release. 370,000.00 British Pounds Stirling may not resignate with shareholders and other would be investors, overall, but what is more significant, that should resignate with investors and make them take interest is this. The granting of the EXTENSION. Why, you may ask yourself is this extension of significance?
Madagascar tracking unit just happens to be in the neighbourhood of the Persian Gulf and the Strait of Hormuz. In light of the fact that Iranian Republican Guard forces have attacked 6 oil tankers in the region and, just in the last week or so, have seized one British flagged oil tanker and stopped a second tanker before inspecting it and then sending it on it's way, I suspect that the British government will be focusing resources on that region and the Iranian government's targeting of European flagged tankers sailing in Gulf waters. Iran has been pressuring Europe to get the US to reduce sanctions and return to the table to renegotiate the Iranian Nuclear Agreement by threatening shipping in the region and disrupting the shipment of oil, by tanker, in the Gulf to Europe. The latest attack, by Iranian forces, took place in International waters. Ship owners, operating in the Gulf, have been reducing fleet exposure to the Gulf as it is becoming more and more difficult to obtain insurance for tankers that owners want to operate in the Gulf. Insurance companies, that provide fleet insurance to ship owners are finding it just too risky to insure ships operating in the Gulf in light of the recent attacks on oil tankers and want to reduce their exposure in case the situation escalates and ships are sunk in an unintended shooting war between Iran and the US or US allies. XCT may be on it's way to playing a pivital roll in ensuring that tensions don't get out of hand in the region as well as providing evidence as to Iranian actions in the Gulf, etc.
Comment by
antiguru on Jul 25, 2019 9:45pm
No mentions of dolar-value increase if any over the existing contract. Still, nice add-on to the upcoming earning report even if the extension hasn't factored in the 2nd quarter earning. If the earing is disappointing, hard to see this extension would excite investors. Nice spin though.