Biggest hidden gem, page-6

Not bad analysis but I would argue that gross margins will increase quickly from here and it is only scale holding them back at the moment.  Cooper Companies (http://investor.coopercos.com/node/21576/html) produces a 65% gross margin.  VTI lenses sell for the same price as Cooper but outsource production and so will never hit 65% but at proper scale I don't think it is crazy to expect gross margins around 35%.  Another way of checking this is to see that St Shine Optical (largest contract manufacturer of contact lenses) has a gross margin of around 35% which would leave 30% left over for VTI.

That said I agree there is another raise to come, but my expectation and my bet is that it will be done at higher prices.  With the strong paediatric myopia data that the company is now starting to collect I think it is not out of the question that quarterly sales could double over the next six to nine months (Dec will be slower growth because of the natural industry cycle before accelerating again in March).  If the company can demonstrate significant sales growth then I think the market will give them some credit for this, similar to the early days of SOM.

Anyway that is the idea.