RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Does LTE have a moat?Norwood,
You wrote "Secondly, the GM% was 25% which is tiny too."
Can you check your nos. and confirm or clarify your number, because I get 34% in the year ended Sept 2016 and 29% in the quarter ended Dec 2016. My understanding is the only error you've made is to do w/ timing and the stock price, so it could be me.
Speaking of margins I recall over a year ago you were telling me that we were going to do 10% margins. I said no you can't use this % because while we did get it one quarter it was explainable. I'm pretty sure I was arguing 30 or 35% and just pointing out you were out to lunch. I didnt check but I think you told me they were just in construction.
I will be a sport now, to volnteer that margins will be low in the Q ending March and the quarter ending June at least, as we incur START UP COSTS in the UK, hiring and training crews, and purchase of equipment and materials. Some salaries and G&A go to overhead and don't affect GM%.
This is all OK, this is how it is supposed to work. I mean why in heck do you think they raised the money for, to earn interest in the Royal Bank of Scotland? If anyone can't see this, can't understand this, then they aren't thinking about LTE as a BUSINESS.
Sure I look at the chart (which looks great) but if you want to have reslience be able to hold something good, you need to remember its a business! Not just 3 letters, a bunch of posts on a bullboard and a chart! Management has a huge role and they've got great management that have guided them to where they are now.
They've opened this door, and I'm really excited to see where they take us in the weeks and months ahead.
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