Equity Story talks about sp falling due to market uncertainties if or whether the LIFX will proceed, but I am thinking it is falling because the numbers don't stack up post-acquisition. The price is too steep for BUD to take on - the irony is when the business has no revenues, everyone focuses on revenues and revenue growth but when the business gains revenue, it looks at EBITDA , profit and cashflow, otherwise stocks like BIQ and CM8 would have prospered. At the beginning, the revenue emphasis mattered because people perceive that when the revenues roll in with y-o-y large revenue growth, EBITDA positive is a given. So revenue only matters if its growth is perceived as being capable of turning the business into positive cashflow- positive cashflow provides assurance of no future rounds of CR.
As my analysis indicate in my previous post, I don't see it happening for at least 5 years and LIFX margins are too low for the business to be profitable anytime soon.
- Forums
- ASX - By Stock
- BUD
- Ann: Half Year Accounts
Ann: Half Year Accounts, page-45
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BUD (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online