Via themicrocapspeculator.blogspot.com:
China Expert Technology ( CXTI.OB ) ( articles ) was down a few percent today, but after the bell announced yet another huge contract . CXTI was awarded a $48M contract ($42.4 minus hardware purchases and PRC business tax) to construct e-government systems for Xi'an city government, located in the Shaanxi province of China. A 5% commission on the net figure will be paid in stock to the company's outside sales firm. While this will result in dilution of approximately 323,000 shares, I think its a small price to pay for such a large contract.
$42.4M is a nice addition to the backlog, to be sure. However, the significance of this contract extends far beyond its price tag. CXTI's previous contracts were limited to governments in Fujian province--this one is not. Hung Tao, Chairman of the Board, stated: " One of our major goals for 2007 was to expand into new cities and provinces and we are pleased that our efforts have enabled us to begin winning business in these new markets."
Investors should be pleased too. I don't own shares currently but would like to buy on a pullback.
$7.74 (05/01/07)
