Its Over, page-434

I have previously cautioned you about a number of **promotion blocked** including Livetiles (LVT).

The valuation is not compelling, at 40x revenue with a $22m loss and a fairly large share based payments to their management.

	Column 1	Column 2	Column 3	Column 4
0	LVT	2018	2017	2016
1	Shares issued	551.572	451.249	378.383
2	Stock price	$ 0.415	$ 0.425	$ 0.12
3	Market cap	$ 228.90	$ 191.78	$ 45.41
4	Annual Revenues	$ 5.69	$ 1.77	$ 0.65
5	Profit/(Loss)	-$ 22.06	-$ 7.40	-$ 13.22
6	Share based Expenses(SBE)	-$ 0.97	-$ 0.89	-$ 4.37
7	Market cap/Revenue (x times)	40.26	108.41	69.96
8	SBE as % of Profit/(Loss)	4.4%	12.0%	33.0%

Today, they made an announcement that

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N3 sales engine surpasses $50 million in sales opportunities

Since late May 2018, N3 has generated a pipeline of sales opportunities that now exceeds $50 million. Conversion of the N3-generated pipeline will continue growing through FY19.

Please note that sales opportunity pipeline is not equated to revenue. It is an estimate of sales value of opportunities that are in the pipeline- they may well not be converted and no one knows what is the conversion rate like. BUT you can tell it is possibly intended to generate shareholder interest.

Personally, I would shy away from companies that declare or announce something that sounds nice but not in the bag yet. We've heard that from a number of companies including BUD , promising more than delivered. True great companies like Appen APX does not shout when they are a distant away or even close to a deal (except for material disclosure) and they do not publicise every single customer engagement unless materially significant, as these are business as usual (BAU) activities. If they do, like YOJ with their Malaysian interest today, without declaration of any material significance to future revenues, you get the feeling that they don't get much traction in between those customer announcements.

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