Lark has announced the appointment of Satya Sharma as their new CEO and they must really want him based on the package:

• $500,000 golden handshake in cash on signing of contract (he gets that paid now even though he isn't starting until 1 May 2023)
• $620,000 Share Rights under the 2022 Employee Share Plan vesting in 12 months
• $675,000 annual salary, inc. super etc.
• Up to $812,500 cash under the STIP (admittedly this is for 'highly superior performance' and under usual conditions he will only be entitled to up to $487,500)
• Up to $975,000 equity under the LTIP subject to share price performance over the next three years

Does that seem a little exey for a company with a $150 million market cap that generated $24 million revenue and a net loss in FY22? Good luck if you can get it I suppose.

[Not held]

Lark gave an update a few days ago the key point being the value of litres under maturation grew 139% YoY and was expected to increase another 55% by 30 Jun 2022.  It has achieved such amazing growth by driving both the factors that contribute to it i.e. litres under maturation have increased 54% YoY and $ earnt per litre grew 55% YoY (to a pretty tidy $216/litre).

I looked at Lark several times in the past 12 months and it ticked alot of boxes but I kept getting blinded by the fact it doesn't screen well on a DCF because of how the whiskey maturation profile the company provides was phased.  Using tools in a disciplined way is great in theory but it sometimes blinds you to great opportunities.  Despite its run up it's arguably good value still.  At the end of FY20 when the SP was under $1 it's market cap was 63% of the value of litres under maturation.  Having put the runs on the board its SP is currently $4.24, representing a market cap of 114% of the value of litres under maturation but that falls to just 69% if the company achieves its forecast for FY22.  I suspect emotion will overcome good judgement and I just won't be able to hit the 'buy' button on this one, but I also suspect I'll be kicking myself for not having done so in 12 months time.

[Not held - negrettably]