Australia's largest stock trading and investment forum Australia's #1 stock forum

BUD

0.00%

4.3¢ buddy technologies ltd

Hopefully our supply issues with LifX aren't costing us market...

First 56 Last

Share
Profile

Follow
McKhenry

726 Posts.

64

04/03/19

23:10

Post #: 37650827
Share

Originally posted by Holdtight: ↑

1Ronnie, why do you insist on spreading falsehoods. That is not what we have been told. What basis do you have for "your analysis". Have you spoken to either LIFX or BUD management teams?
We have been told that revenue is expected to continue to rise 70-100% in 2019 and that Jan was up 100% and almost broke even. Looking forward to hearing how Feb went. If they continue to break even until October they will have a very substantial EBITDA, as the majority of profit in these types of companies occurs in the last 3 months of the calendar year.
We were also told that 2018 would have been profitable if it weren't for the September US tariffs. According to the press out this morning on bloomberg *MOST OR ALL U.S. TARIFFS LIKELY TO END UNDER U.S.-CHINA PACT.

We have also been told that the margin of 30% is expected to move towards 36% in coming years. This makes sense as volumes increase and the manufacturer is no longer the owner and need to provide a more competitive manufacturing price.
Further, we have been told the capital constraints of prior years had handicapped the revenue growth. Given the escrowed share milestones, they obviously expect greater than 100% growth.
We have also been told that Bud plans to save on transportation costs (Sea rather than air) by better planning orders. This can be achieve as they will have access to a debt facility that they did not have before to manage cashflow fluctuations.

Add to all of those that we have been told BUD will cut costs and increase revenue to get to breakeven by the fourth quarter.

By the end of the year, what you will left with is a $70m-$100m revenue coy, with a positive EBITDA, with quite possibly a whale finally landed.
All of this is IMHO.

Expand

Hopefully our supply issues with LifX aren't costing us market share, not being able to fill orders (Amazon) not a good place to be

BUD Price at posting: 6.4¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

WCN

White Cliff Minerals bags lucrative Canadian deposit at Rae Copper

First 56 Last

Add BUD (ASX) to my watchlist

Hopefully our supply issues with LifX aren't costing us market...

Top Stories

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

White Cliff Minerals bags lucrative Canadian deposit at Rae Copper