Eventually even if a sector is unloved it will need to move toward its fundamental value. Its starting to get exciting again as we approach the next quarterly. For those that missed it the last set of announcements was actually two new contracts. At some point if this company continues on this trajectory they should hit a critical mass of contracts where: 1. they start covering their costs with ARR 2. the flywheel starts where the quality of the product gets spread by word of mouth as they achieve more market saturation reducing their acquisition costs for each new contract.
The question of course is whether they can continue on that trajectory and so we re-evaluate each release to see if they are still on track, but I don't see anything worrying at the moment. The other catalyst which could provide a decent boost is that if all these post pandemic infrastructure plans eventuate, it could spur a need for reallocating human capital between industries. If the company positions itself correctly it could stand to benefit from that. On the flip side, some of that potential is being priced in, so you need to keep an eye on the political developments with the infrastructure bill in the US as it also poses downside risk if it falls through.
LVH Price at posting:
45.5¢ Sentiment: Buy Disclosure: Held
