I am going to digress for a moment here and defend DWhale.
He is a bit unpopular on this thread at the moment simply because his target buying price is below the current market price. In a thread full of bulls that makes him unpopular.
However......he has articulated his reasons and has clear data points that he is following that will either confirm his thesis or contradict his thesis. It has been my experience over many many years of investing that it is not so important to be right in the first place, but to able to adjust your opinions to data. You can only do this if you set your own expectations, look carefully at the news flow and have the flexibility and strength of character to change your mind.
If you love a stock just because it is going up , or hate a stock just because it is going down, you will be sorely whipsawed.
When I read some of DWales comments I see someone who will buy the stock if there is a correction in the midst of negative sentiment, but at the same time, someone who will pay up for the stock if he sees information that alters his view of the valuation. Both are good ways to invest. I happen to doubt he will get his correction (technically I see institutional buying absorbing one large seller who seems to have a limit ...and I believe we will get further positive data) but I actually respect his discipline.
FWIW, I think the two important metrics at the moment are ARR growth and the trend in cash burn.
BUT (and this is where I might disagree with a majority of you and agree with DW), I dont think the company should or will reduce cash burn to 0 in the short term. This is an early stage SAAS business that is growing like a weed, and to throttle back growth and start running for positive cash generation as if it was a mature software company would (in the opinion of this investing warhorse) be a mistake. I would love to see another quarter or two of declining cash burn to demonstrate a longer runway between the next cash raise and an ability to be independent of capital markets but they are currently too small take their foot off the gas. Institutional investors are very wary of the "liquidity trap". They will only get involved in small companies that are going to grow into big companies.
If they hold spend at current levels, then the growth will be steady at a fixed increase per quarter (The same number of salesmen will make the same number of sales!) I would like to see them prove they can manage costs but then grow spend in line with revenue.
As a former colleague once advised a young company "Grow Baby Grow".
A growing company will get valued at 10x ARR when it gets discovered.
Good hunting
LVT Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
(20min delay)