your analysis forgets the supposed annuity nature of ohm contracts
if you see ohm revenue declining it doesn’t just mean sales are unreliable - it means the entire price/sales methodology underpinning the share price is wrong
ie bud was being priced on 40x p/s because mgt were framing it as v high growth high margin recurring revenue
as it is now know to be none of these things - the multiple will contract. I’d say 5-10x p/s likely
the company won’t go out of business this year - even if lifx falls over its got at least one more raise in it
so if you’re long but underwater if seriously consider some tactical trading to get clear
the ongoing rationalisation of events by +18 month holders though suggests they are in the wrong space
stock market is ectremely unforgiving on misfiring juniors
you can’t take buy and hold approaches to such stocks
buffets ways are entirely predicated around positive free cashflow stocks
BUD Price at posting:
6.7¢ Sentiment: None Disclosure: Not Held
