Value Microcaps Motherboard

[Knowledge is King]

I bought a bunch of LVWD, $.157 avg.


The company has been profitable (net of a Q4 extraordinary charge) for 4 consecutive quarters--EPS over that period totals about $.025, suggesting a trailing P/E of about 6. Revenues are in a nice growth trend, with past 5 quarters showing: $1.9M, $1.93M, $2.15M, $2.49M, $2.64M.

The backlog too is growing: $4.1M @3/11; $5.3M @9/11, $5.8M @12/11, and $8.3M (!) @3/12.


Major-league clients include Wal-Mart, Ebay, and Johnson&Johnson. According to the company, WMT and EBAY accounted for 49% of Q1'12 revenues, vs 36% Q1'11. I believe (though I haven't found a PR about it) that Wal-Mart became a client just last year, perhaps contributing to the jump in backlog.

The balance sheet looks solid, with cash of about $4M ($.11/share) as the company reported collecting $3.2M in accounts receivable in 4/12.


Overall, it looks like you have several ways to win with LVWD. The primary one is that Q2 should be very impressive vs last year. Also, the whole social network thing will regain its momentum (and hypability) very quickly in my view.