Well established, well run and tightly held micro-cap story.

When asked what LaserBond do, I have told friends that they "zap metal with lasers so that it lasts longer." Needless to say, I'm far more interested in the financials than the technology itself here.

Currently, all 3 divisions are growing AND SCALING impressively. For a manufacturing / engineering services business, gross margins are surprisingly high, though this within itself is a key risk. The company has certainly managed to carve out its own little niche, and many years (decades) of investment in R+D should prove a barrier to entry for competitors.

Products division has recently begun selling direct to US steel industry providing significant revenue bump initially, and I remain hopeful that this can be a key growth driver into the future. 2H19 Technology sale of $1.8m (upfront) demonstrated an ability for the performance here to significantly affect performance at company level. The pipeline for future sales looks strong, however it is worth noting that revenue is lumpy and requires increased CapEx before recognition of sale.

The technology division also looks to capture very attractive trailing revenues (recently indicated for 7 years after the initial purchase) so any sharp uptick in sales will provide some revenue base for future years also.

The company has previously projected its goal to reach $40m in revenue by FY22.

Assuming this can be achieved, I have posted a (quite crude) valuation of ~ $0.685

Having been in $LBL personally since $0.135, an element of confirmation bias has potentially crept into calculations here. Also note that there is LOTS TO ACHIEVE BETWEEN HERE AND THIS VALUATION, however the price target is indicative of the opportunity if management can continue to deliver.