You'd have to assume that the company will be releasing the much...

You'd have to assume that the company will be releasing the much anticipated quarterly update tomorrow. A bit later than expected, but it gives us a chance to have a quick refresher, and look over the numbers in the previous update to see how it compares with the latest figures.

The numbers in the table below were taken from the last quarterly update released on the 30th of April, depicting the total number of units sold in the quarter.



The total increase in unit sales across all regions equated to an increase of 39%.

Reading over the posts here over recent days -not to mention the jump in the share price over the past week- the expectation seems to be that the company will be reporting another strong increase in sales.

The important question here is what kind of number would meet market expectations?. What would exceed expectations, and what would disappoint?.

At the moment, the macro backdrop is favourable for growth companies. In Australia, with interest rates at record lows, there isn't much incentive to leave money in the bank earning a pittance. The All Ordinaries Index is also near record highs, which tends to bolster all stocks.

Another point to keep in mind is the market cap of VMT, around the $30 million mark, doesn't look particularly excessive.

So given we are in a favourable environment for growth stocks, and with the market cap of the company looking modest, I don't think VMT really needs a stellar result to hold its ground.

If unit sales crack the 5,000 mark (an increase of just over 30%) that would count as a stellar result, by my reckoning. A strong result would be unit sales above the 4,500 mark, about a 20% increase. Unit sales of around 4,000 or less would likely disappoint the market and lead to a drop in the share price, in my opinion.

I tend to agree with the optimistic sentiments expressed by numerous posters on this thread over recent days, and my guess is that unit sales will crack the 5,000 mark. Keep in mind this is more a guestimate than a prediction.

In part, my optimism is based upon some of the things I read in reviews recently on bikes sold by this company, especially those from Europe. The line below is from a French review of the TC Max earlier this week:

...There is good reason as to why this little bike has made a place in the streets of large cities, like Paris...

The suggestion here seems to be that the TC Max is a common sight in the streets of Paris. Given that Paris has a population of over 2 million, you would have to assume that the company has sold hundreds of bikes to Parisians over the past six months at the very least.

When I read this type of comment, it makes me wonder if there is a bit of a disconnect between Australian investors and the reality on the ground in Europe. I guess we will find out the truth of the matter soon enough.