In my opinion LGD is a sleeping giant. Analysts are confidently predicting FY07 NPAT of around $11.4mill. Even post dilution from the recent capital raising, 07 NPAT of $11.4mill has LGD trading on a forward earnings multiple of just 9. If LGD can maintain 20%+ earnings growth for FY08, it should begin to trade on a multiple of around 18.
The introduction of Vista should also focus investor attention on LGD over the course of this year.
Another rapidly growing tech stock that is currently trading on a forward earnings multiple of only 9 is Adacel (ADA).
Both LGD and ADA are obviously strong buys (they are my top non-telco tech picks for 07), and, if profit forecasts prove accurate, both could generate 100% share price gains over the next 12 months. (Thorney is also a major shareholder in both companies, and has recently increased its stake in both companies).
LGD Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
