VMT undervalued, page-345

It seems unlikely given that employees have been buying on market.

VMT are a growth company in a huge growth market. They have been validated by the consumer via increased sales with units going out the door growing rapidly. This quarter is unlikely to be different given the new products launched and the further validation of a major brand such as Ducati having come on board.

My expectations are that we see another branding deal near term and the unit sales trend continue to climb. As others have alluded to factory capacity is sufficient to scale several fold to meet the increasing demand. Margins have been improving with scale, fixed costs are now covered so an increase in unit sales is now an increase in profits.

VMT sure it’s had a good run and sure there may be pull backs along the way but intrinsic value is increasing, as will the SP. Currently the annual run rate is ~24,000 units and gross margins 22% therefore revenue should at $2500/unit be $60m with gross profit circa $13m with a good argument available that says growth will see this double in the next 12 months. It’s a bloody easy hold for me and have added on the recent dips.