Liberator Medical Holdings Inc fka LBMH

[FrankLind]

I think revenues have been increasing nicely.

His plan is to lock into long term recurring revenue streams, hence the heavy advertising expenditure still depressing earnings.

The only risk is that the advertising does not return what is expected - i.e., good ROI. Mark has the experience here, and I think if the ROI is too low they will not spend so heavily. Further, as stated in the 10qs, advertising is only done where the return is far beyond the costs of advertising.

This is a long term play because earnings are likely to remain depressed as Mark plows any excess back into advertising to further build the recurring revenue base.

The moment he throttles back advertising, earnings will balloon.

I think he is trying to build up the base and then down the line sell the company. It is solidly profitable without the advertising costs to further build the base.

I look at this company as extremely safe and predictable and counter-cyclical.