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28/02/19
15:57
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Originally posted by cyw:
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The recurring revenue may not be that hard to understand, it is just like renting a car or an apartment. What is harder to understand is what LVT really sell. What do their systems really do and why would people want to buy it? Xero is easy, it is an accounting system and everyone knows you need some sort of accounting system if you run a business, large or small. I think most companies with high PE's have products that are easy to understand, like ALU sells software that is used in designing circuit boards, APT lets you buy something now and pay later without paying interests or fees etc. Perhaps LVT should educate the investing community more about its products and some case studies as to how companies benefit from its products.
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I agree, I think the AI space is not very well understood yet. Then again, Appen is one of the best performing companies at the moment, and it's value is rooted in AI machine learning.