@Holdtight
i have no idea what you are saying re 2x vs 200x - it doesnt make any sense
BID generated $1.054m customer receipts in June qtr, spent $1.15m, had $5.4m cash and EV of currently $99M. EV/sales ratio of 23.4
BUD generated $282,000 customer receipts in June qtr, spent $4.4m, had $22.3m cash.
EV of $106M
- actual EV to sales ratio was 113.9 on its customer receipts
but -
if you;re willing to be generous and treat the numbers in this nebulous 'receivables ' should be booked as receipts despite how we said we;d only recognise income when it was in the bank' way then
EV to sales ratio was 42x , spending ~$4m qtr - so even on a benign reading its burning +$3m a qtr if you ignore one off govt grants
vs expectation it would be moving close to cashflow positive by Sep qtr
Ive been long BUD because i took mgt at face value that its experience with Thor had allowed it to develop in Ohm a system that was so attractive it would justify the v high charge rates - and in super high demand according to company
The numbers for past 3 quarters havent supported any of those views - so I;ve been forced to change my view.
That plus some indicators about how this was being played. I didnt care for the fact they started talking up Europe after I;d been talking up Europe.
the soft marketing by salesforce to investors via twitter - but never seeing anything from actual clients.
Director resigning in what was the clear window to do so - and the sp spurt at that time indicating insider trades popping the stock to exit.
ie a range of things that have made me very twitchy
and finally we have $282k customer receipts when hopeful of +$1m - ie a big drop just when the j-curve is supposed to be happening.
too much smoke for me.
but like i say - it wont be my opinion that matters.
market reaction is the only thing that matters.
but even if i look past this receipts vs receivables - the valuation is still such that I cant see it having any upside -
see what happened to ICQ- propped up by its vested insiders at whats still an absurdly high valuation - but just goes sideways month after month - with feeble attempts by the mgt and board to get stupid money to buy overpriced stock around each qtrly - only to watch it fall back
to have serious upside you need to be offering sub 15x Ev/sales ratio and/or high margin and positive cashflow
ICQ and now BUD appear to be the opposite
this is all unfortunately precisely why I said a month ago I would be considering positions in BUD during the post tax selling equilibrium recovery period.
