Surely all SHers and the markets would agree that it is important to have been told what % of revenue was sponsored revenue otherwise how can one ascertain the true growth prospects of the company going forward.
It is illogical for those on here who say BIG have a good business model when a portion of their revenue is obtained in a unsustainable way.
What I don't understand given that sponsorship revenue is questionable going forward and to establish a more prudent view of the company why no mention of it in the 1/4ly ANN.
The 1/4 Ann had a heap of information in it....including mentioning cash margins of 46%.
It all makes sense now..........as it is easy to achieve huge cash margins when part of your revenue is from a sponcered source that is paid for in equity.
The sponsorship deal is not a sustainable business practice.
IMHO given sponsorship revenue is a material issue and the fact they have avoided reporting it separately in the latest 1/4ly it could easily be deemed by the markets as fudging the numbers.
I feel sorry for holders cause the market ain't going to like this. Hopefully the company comes clean and tells the markets what revenue portion is "unsustainable sponsored revenue" in the latest numbers and hopefully that number is not to high.
BIG Price at posting:
$2.22 Sentiment: Hold Disclosure: Not Held
