@Batman While Ron can be a bit too exuberant with his rockets and price targets I do think his comparison between ERD and CAT is a good one. I also compared it to GTK and BVS, not so much in business models but in the way the market perceived all of these businesses.

I have to constantly remind myself "price drives narrative". When share prices get beaten down, the market will focus on the negatives and risks around a business. But that is where the opportunity is because turnarounds and operational improvements get overlooked. ERD reported $14m cash profit in 2H25 and at the time was trading on less than $200m market cap. It wasn't turning around, it had turned. But with a share price still at multi year lows the focus remained on risks.

Two months later and a share price that has doubled, the market perception is quickly changing. Tailwinds for growth, emerging Aussie segment, trades cheap on ARR and cash profit compared to peers etc. I still think ERD is worth significantly more, maybe $3-4 on its merits. But whack it on peer multiples and the support from index chasers (ERD is a chance of NZX50 inclusion) and I can get to Ron's targets easily.