BCT 0.00% 0.3¢ bluechiip limited

The company mentioned the business will move to profitability by...

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  1. 590 Posts.
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    The company mentioned the business will move to profitability by 2021 already (year 3 of Labcon contract). There is no point in management providing earnings guidance at this point as they will get no recognition for it anyway. They already provided some sales guidance from Labcon and the market is ignoring it - perhaps because the punters who jumped into the stock without understanding the business are now winging.. some assumed that once you sign an order volumes spike the next day. 


    It's all progressing as it should and sales will accelerate materially from 1Q19 as Management clearly stated. Signing a large contract with one of the premier names in global biobanking supplies is a huge achievement and it takes time to get volumes rising (as you depend on your customer to get their production line prepared for the larger volumes). 


    Rather than overanalysing a quarterly result where the company spent most of the time negotiation a large multi-year contract and adjusting production and delivery plans for the next 36 months, I prefer to look towards what the business has put in place, the mega contract they have which will go for decades and the opportunities that will arise from that same contract. 


    Things are going the right way and the outlook is bright. But it won't happen overnight. 

 
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