EYE Summary (August 2024): Incredibly Undervalued, page-362

Cheers, as I've said before we have a really great forum here with many excellent posters (minus a few of course), so I'm always happy to spend a bit of time providing some of my own research in return.

I don't really like to set specific price targets. Valuations are different as they are more theoretical and based on how things should be, however I don't really believe it is possible to actually predict the price a stock will go to. That is really up to the gods of the market. However, and I do intend to do a more detailed model on this after we get results this week, I think if we can hit the base case a valuation of approximately $400m would be reasonable. This would be approx 10x sales, which is substantially lower than peers in the MIGS space during their own growth phases and is similar to many other fast growing listed stocks. This is based on the very high growth being recorded, and the fact this company is incredibly close to becoming highly profitable. Perhaps I'm being conservative, there are plenty of examples of high growth companies like this running to far higher valuations, but IMO it's far better to be conservative and positively surprised, than over expecting and negatively surprised.

What do I expect when results are released this week? Couldn't tell you. For all we know, there's a large institutional investor waiting in the shadows to pounce as soon as the numbers are released, quickly sending this to 50c due to how tightly held it is. There could also be a bit of a delay, perhaps a few days or weeks, as the audited results will be incorporated into the data banks of algos and scanners used by larger investors, and then DD will commence prior to the stampede occurring. This is what I'm hoping for at least, which is why I have a bit of cash ready to quickly invest following the release of the results, assuming they're as great as I'm hoping for. The most important thing is that sooner or later, we do get the necessary buying strength to push this above 30c and into higher price ranges. Money is NEVER left on the table when it comes to the stock market, this won't be ignored forever with the stunning results it's been recording and so someone will pick it up and send it flying. Then it really becomes more of a self fulfilling prophecy, with higher prices causing even higher prices. For whatever reason, rising prices tend to attract most investors more than falling prices, and so a major price appreciation would be the best way to quickly get this on the radars so more investors can finally do their own DD to discover the gem we have here. Anyways, see what happens, very keen for this week though