The big, almost exclusive focus of the report, is on the drone program and LIS signalled satisfaction with its technical progress thus far. The Advanced Battery Management System is a critical part of the value proposition to potential customers and a source of intellectual property conceived of and developed by LIS.
I think LIS could provide a Gantt chart conceptually illustrating the Dawn-Till-Dusk drone program (1) technical timetable and (2) commercial timetable. It could also scale the commercial market opportunity in terms of dollars and potential partners.
LIS could understandably be reticent in doing so because it could open itself up to "gotcha" questions or accusations if it fell behind its schedule. But, that is life, and it should overcome its reticence. LIS clearly perceives value in what it is doing and we can see and understand the product it is attempting to develop with its partners. It is also apparent that its new production facility is an important technological achievement of which it is proud. So it needs to look beyond these potential drawbacks and rise above them.
At some point LIS needs to treat its shareholders as partners and bring the Australian capital market into its confidence. It needs to take a risk with its communications and shareholder interactions, which it is inadequately doing and is clearly uncomfortable with. It is not uncomfortable in taking technological risks and it therefore has the capacity to take these other important risks that drive its valuation and share price performance.
It should as a priority set itself the task of bringing Australian institutions onto its share register.
LIS needs to take the next step.
LIS Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
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