BUD 0.00% 4.3¢ buddy technologies ltd

Equity Story talks about sp falling due to market uncertainties...

  1. 2,103 Posts.
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    Equity Story talks about sp falling due to market uncertainties if or whether the LIFX will proceed, but I am thinking it is falling because the numbers don't stack up post-acquisition. The price is too steep for BUD to take on - the irony is when the business has no revenues, everyone focuses on revenues and revenue growth but when the business gains revenue, it looks at EBITDA , profit and cashflow, otherwise stocks like BIQ and CM8 would have prospered. At the beginning, the revenue emphasis mattered because people perceive that when the revenues roll in with y-o-y large revenue growth, EBITDA positive is a given. So revenue only matters if its growth is perceived as being capable of turning the business into positive cashflow- positive cashflow provides assurance of no future rounds of CR.
    As my analysis indicate in my previous post, I don't see it happening for at least 5 years and LIFX margins are too low for the business to be profitable anytime soon.
 
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Currently unlisted public company.

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