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08:27
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Originally posted by seventhseal:
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i can assure you I am not an accumulator at these prices. i held LVT for over a year (so ive been following closely for around 15 months which i suspect is a lot longer than most on here). I sold my last parcel into the last Microsoft announcement. I made a (very) small profit that did no justice to the length of time invested. I keep them on my watchlist and read every word of every report and ann and will continue to do so for signs it is worth picking up. Given the "hyper" growth story has now been tarnished at best the next report will be critical on two fronts. Was the last quarter an anomoly or the beginning of a trend...all any of us can do as retail investors is flip a coin because none of us know. Hence the roulette analogy. Because if they ink two results like that then the market will be brutal. Secondly for those whose memories on LVT dont stretch back over 12 months all eyes will be on how they are spending the $55 mill. Because this time last year was party time at LVT after the cap raise. "Entertainment"and "consulting" went gaga and marked the beginning of what has been a 50% slide in the SP. Now youve $55 mill cash in the bank, a history of losing control over costs and an urgency to repair the growth story or totally lose investor confidence...what os the most likely solution to this conundrum they find themselves in? Spend more on sales and marketing? promotions? Discounts? Special sales incentives for the N3 gravy train?. More sales staff? Maybe bring on a few more installation "consultants" so we can boost the billables to pad the story. All sounds expensive to me but they have $55 mill of YOUR money so no biggie right? In a previous life i was General Manager of Sales for the company that created and spun off what is now an ASX100 software company. Ive. seen it all before. "maybe" is the absolutely correct word to use. "maybe" it was an anomoly. "maybe" they the sales pipe was full of large well qualified deals and their gun salepeople just couldnt get the deals over on time. "maybe" the ROI relative to other projects or more mission critical projects suplanted LVT on the priority list last quarter and "maybe" it was just one of them shite luck quarters. Or maybe a well drilled proffessional sales orgnisation understands the concept of velocity in their sales pipe and never leaves themselves vulnerable to a few deals going south to deliver the required result. Bad sales results (and for the company to post a bad result means somewhere there is a sales manager or three and a dozen reps that have totally failed) are ALWAYS a symptom of something greater. And "maybe" is a really bad place to invest your money.
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Hi seventhseal, thanks for explaining your view of the stock. Personally I don’t agree but your attitude is perfectly logical.
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