The profitablity and a solid 4c will take time Benny.
The sales had to come first which they have. It has been pointed out a number of times now that it takes 5 months to make bank however no one can tell me how the bloody hell Buddy is accounting/when they account for their sales! Regardless the sales are happening.
The knock on affect from the sales is manufacturing couldnt keep up which has now been fixed which should ensure shelves are packed all year round and sales can increase.
Apart from the above the main issues have been:
Debt - Buddy over extended and instead of raising to clear the debt/s 12 months ago, they waited and constantly used band aids. This has now been fixed. Margins - contracts have been re-negotiated at both ends. Manufacturing and customers. So this has been fixed.
Management underestimated, potentially through a lack of experience, how long it would take to gain traction and effectively be able to grow Lyfx which has resulted in the chasing of the tail as crazy put it. It resulted in losses. I have serviced businesses large and small ($200K t/o to $50m t/o pa) over the last 20 years and i will say it again, it can take up to 5 years to overcome one bad one. It has been 12 months of, for the most part, nothing but positives. You can go to town on myself and the Buddy board if in the next 6 to 12 months this business isnt where all your expectations are now.
Lets see wat the Oct figures are like once Dave actually decides to pull his finger out and then we have november hopefully by the end of the year which should then give us a very good idea how the Dec 4c next year could be starting to look like I am talking about exercising patience for 8-10 weeks that will give us a better idea as to whether or not Buddy is starting to progress. More products coming on board with more retailers to sell them so hopefully we are all friends again this time next year and enjoying a beer because we have all made some nice money from our investment in Buddy over the next 12 months.
BUD Price at posting:
4.6¢ Sentiment: Buy Disclosure: Held
