Ann: Appendix 4C - Quarterly Report with commentary, page-88

I don't know what some of you are complaining about.  A 51% increase in quarter on quarter revenue is nothing to sneeze at, and actually that's what a lot of folks here said they would be happy with.  So what's the problem?  Is in the "challenges" mentioned in the commentary?  I actually wonder if DM should make the commentary a couple sentences.  Maybe: "sold some stuff, working on selling more stuff."  Would that be better?

GB you have always had a problem with Bud's PR and CEO commentary.  A lot of the baseless accusations you have leveled have been proven to be false.  You label the CEO as unethical yet what I see is DM being very open and blunt about what's going on at the company.  If all he was sprouting was unicorns and rainbows and proclaiming "everything is awesome!!!  Buy more shares!" then I would be concerned.  I think it's great that he is willing to share the roadblocks and growing pains that they have come across.  Would you rather the company gives us less information?  He's being the exact opposite of unethical.  He's being open and honest.  And you say he did a pump and dump with his shares?  If so he's terrible at it, because he sold far below the SP high.

Oh and the "smoke signal" of the board member resigning?  Ridiculous.  If you knew anything about Ananda Kathiravelu, you'd know that his game is financing IPOs and bringing startups to the ASX.  He often stays on as a director and then steps down.  He's done this with several other companies, inlcuding RAC and WBT (resigned in March but the way).  He can't have his fingers in too many pies.  Nothing to see here.  You should have expected him to only be a temporary board member.

And Telstra...  I'm not in the least surprised that they put other deals and direct sales in Australia on hold while they were negotiating with them.  Telstra wanted exclusivity, and so during negotiations it would have been a good faith move by Buddy to hold off on other sales within Australia.  In fact it's not unreasonable to assume that putting direct sales on hold during negotiations was actually a condition put on Buddy by Telstra.  Buddy seemed confident in the deal closing and so at the time they were probably happy to accept those terms and just pass on any customer leads once the deal was signed.  But Telstra was dragging their feet, and so Bud killed the deal and moved on with another company, Dicker Data. Great!  That was the correct decision.  Telstra is a well known brand and but if they are not motivated to sell Ohms then we are better off not partnering with them.

Overall I think a few folks here are just hard to impress.  To me this Q report is in line with past guidance and is more or less what I expected.  Personally I am encouraged by this paragraph in the commentary (emphasis added by me):

"In North America, the focus has been on progressing several bids for the direct purchase of Buddy Ohm into large property portfolios in the hospitality sector . Schools, supermarkets and corporate locations have been the focus of the Company’s direct sales efforts in this region. In the coming quarter, management is looking to add resorts and restaurants/food storage facilities to the direct sales customer roster."

DM stated that some of the resellers have been slow to get ramped up, and so I'm happy to see that the company is focusing on direct sales.  Nobody is going to be more motivated to sell Ohms and move more quickly than Buddy employees.  We have reseller agreements in place around much of the globe, and that's great, but buddy focusing on selling units in their own backyard is a good move.  And from that sentence above we know that they have placed bids (plural) for getting ohms into "large property portfolios."  Fantastic!  Don't focus so much on the challenges.  There is plenty in this 4C and commentary to be excited about.

Go Team Buddy!