Another way to look at the situation here is that at a share...

Another way to look at the situation here is that at a share price of $16, with 122 million shares on issue, the market capitalisation is $1.95 billion. Using the middle of the CY21 EBITDA guidance ($125M), the company is trading on circa 14x EV/EBITDA.

I am very comfortable with that valuation. In fact, I think it is extremely cheap even if growth remains below industry rates going forward. The company is being priced as if it will underperform the industry average indefinitely. That simply doesn't make sense given APX is the market leader.

I'm not expecting to see an immediate reversal (albeit we might see a bounce back to $19-20). Indeed, my APX position may drag down my *** performance in the short term. However, I think anyone who holds Appen near current prices will perform extremely well over a 6 to 12-month+ horizon.

Appen is the largest holding in my portfolio and I am very comfortable holding a profitable and high-quality company at marked-down prices for the medium term.

T.E.P.