BUB 3.85% 13.5¢ bubs australia limited

Business Model for sustainable growth, page-18

  1. 574 Posts.
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    Business model: not much different to A2M and BAL, ie chasing the China dream.

    Strategy: Execution of marketing strategy is key, eg product differentiation and benefits etc this is where the big risk lies. You also have the channels to market strategy starting a to take a shape. Given the stage is at, if share price keeps running the more critical it becomes to deliver quick wins and quick growth... Slow revenue growth will have a disastrous impact on the share price. At these levels now I think it's starting to look over bought in my opinion because the share price has run up as if success is guaranteed - and we all know nothing is guaranteed.

    Product: organic goat milk compared to cows. Although it does have competitors in this space. A2M is still streaks ahead on my level, I don't know how you can get mums to switch. You also have the regulatory risk.

    Is it still worth it? Perhaps, but at these levels the amount one should risk becomes smaller and smaller...

    DYOR
 
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