Ann: US Expansion Plans Temporarily On Hold, page-18

I reiterate my own guidance price and am still not optimistic about an immediate reward form my purchases, but over the next year I think we can get there.

As indicated previously in the comment feed, I expect the multiple to compress which it has to around PE x15.97.

With NPBT of $4m approx. It leaves us with at MOST $3m NPAT.

Outstanding shares 116m = 0.025cents EPS x current P/E x15.97 gives us an approx. share price off $0.41c maybe 10% upside from here.

If we maintain this price right now, perhaps a little closer to the above, then we are currently at a reasonable valuation based on the downtrend in performance.

My reasoning is focused on FY 26 if we can grow underlying earnings to the $4m NPAT then that is where I expect a rerate and if the multiple increases in line with a conservative average say x17 (The 5 year average P/E of LBL is x21.23) then I expect a share price in 12-18 months of…

EPS 0.034 ($4m NPAT) x PE 18 = $0.586. around 50% upside.

*Given no dilution in the short term and they can at least grow earnings as guided initially.

I think now it is more likely, given that fact the Large US expansion strategy remains on hold, so expenditure isn’t as unpredictable, and we can capitalise on domestic growth.

The $1 valuation analysts are laying on this is very unreasonable, even as a shareholder I am not expecting this in the short term. There EPS extrapolation was ridiculous I think like 0.60c cents in another year. I don’t see how revenue and earnings can jump so much in a short time frame, and if it could where from?