Hi Geospud, I am very bullish about LBL,but I am rather realistic/conservative. LBL is different from a miner or a biotech. It is a service/manufacturing business which is capital intensive. It needs people,machines & space. Expansion (either greenfield or by aquisition) will come at a cost. To illustrate,...In 2011,their revenue grew by a mere 27%(admittedly,their cash flow,profits & EPS grew much bigger) The market is probably expecting EPS growth of near 100%(3.5 -4c/share)in 2012 which should make an SP of 40c quite reasonable. It is difficult to expect 100% growth in profits every year after that. Small companies can have an explosive growth fo a year or two,but their growth moderates afterwards. I would be quite happy to achieve 500% return on my investment in 2 to 3 years.
LBL Price at posting:
23.5¢ Sentiment: LT Buy Disclosure: Held
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