Ann: ARR reaches $18.6 million, up 272% YoY, page-57

Good point! My thoughts on LVT's valuation are that it is excellent value and inexpensive right now, due mostly to the recent market correction in general and its well-received and oversubscribed capital raising in particular.

For the past couple of years it has traded on a revenue multiple in the range 15-20x and mostly at 15x. This is reasonable given its revenue growth rates of 260-300% depending on the period in question.

At 44.5 cents it is on a revenue multiple of 13.1x. So it is now trading at a multiple discount compared to the past couple of years.

At the end of the December quarter ARR should be $25m; possibly more. Working off $25m and applying a revenue multiple of 15x gives a valuation of $375m ($25m x 15).

I see the potential for the share price to appreciate over the next 3 months by 53% assuming a $25m ARR at the end of December from its current market capitalisation of $245m. I would say the risk is that ARR will be higher rather than lower than this figure at the end of December. However, an ARR of $25m translates into a share price of 68 cents.

This is a classic Warren Buffett situation right now of people being bullish when the share price is high (above the raising price) and bearish when the price is low (below the raising price).

Others can have their share price targets and entry points, etc. etc. That is what makes a market. However, this is how the stock has traded, and fairly in my opinion, over the past few years and it is pretty simple (another virtue). If LVT's continues to increase ARR as per my numbers here, the share price is going higher.

By the way, institutions - like all shareholders - don't lose all the time or win all the time. They win some of the time and lose some of the time. That even applies to Warren Buffett. It is just that he wins more of the time than most other people.