LifX has been selling bulbs for a while. I’m sure they know what...

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DreadPirateRoberts

580 Posts.

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23/02/19

13:17

Post #: 37541597
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Originally posted by techfacts ↑

Seriously @Send2deking an @bentas74 is this the best you have, personal insults. For all your upramping and no ability to back it up with reasons why.

Yet for all us downrampers and negative people, who are actually realists and who use common sense when assessing companies and management, can you please explain to us why a 50% discount make any sense at all.

Lifx sells 1.8m ligh bulbs and is bleeding money cannot make a profit. BUD buy this loss making retailer so they can add revenue to the topline yet add more losses to the bottom line of an already under stress business being BUD, then borrow $40m to pay for Lifx, with debt to pile on top on the already loss making companies, so this is all looking awesome right now. Then to top it off, management decide that selling the product with a 50% discount while maintaining the same cost base is somehow going to make them profitable this year. In anything it is going to halve their revenue and increase the losses by 50% because cost of sale has not changed, WOW, this is great thinking by management. Next we will see OHMs for half price...awesome.

I know the uprampers and people with rose coloured glasses will argue that these companies are start ups, fast growing businesses and so on, they arent this anymore, public listed, are debt laden businesses with massive burn rates, trying to find a way to breakeven. I hope they can achieve breakeven for all shareholders.

Regardless, it would be good to understand why the uprampers think this situation is a good one and why it does not signal desperation by both companies? IMO

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LifX has been selling bulbs for a while. I’m sure they know what type of marketing and what type of sales work for different times of the year. You’re making a bigger deal out of this than it really is.

BUD Price at posting: 7.6¢ Sentiment: Buy Disclosure: Held
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LifX has been selling bulbs for a while. I’m sure they know what...

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