Reality is the concept of project NPV / company NPV’s, EBIT...

Reality is the concept of project NPV / company NPV’s, EBIT multiples (yes including all expenses) is pretty irrelevant at the moment and theoretical fluff....market just values it on the sniff as to whether they will get sales traction.

If / when a sales announcement happens, like with any other speculative stock, it will more than likely shoot up through a combination of (a) stronger fundamentals, (b) market traders increasing liquidity via demand side pull, and (c) potential for funds to start taking position(s) as many have mandates that sales orders (ie. revenue) must be booked.

It is (c) I’m most interested in, and where I think Barnes has done the right thing speaking to various funds and institutions this week in the US....most Aus funds too small and risk adverse to take a decent position in LBT atm.