Upcoming quarterly report considerations

My thoughts on what the July to September Quarterly may contain, and why it will disappoint some people.

Put most simply, it will disappoint some people as their expectations are unrealistic.

There was evidence of this with the 4E from the 25^th August. Some looked at various numbers on the 4E and expressed disappointment at a multitude of things they read into it. The share price fell pretty rapidly after that date, so many will see that as confirmation they were correct - that the report was a poor one. I expect that with this upcoming report they will once again have unrealistic expectations, and if they still hold stock, there will be further selling.

This quarterly will report for the period July 1^st to September 30^th.  If revenue is paid to Nuheara on say 45 day terms, then the report will reflect revenue from about May 15^th to August 15^th.

Here are some of the factors that will affect these sales:

•   Check out the number of B & M stores in this period. Not that many.
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•   In this period the backorders had all been cleared. The initial buying rush from IndieGoGo and from the CES award had ended. We had sold to the early up-takers and enthusiasts, and were about to start having to convince cold buyers.
•   Supply was OK by then. But I suspect it slowed during that time with the change from the V1 to V2 model on the production line – or was slowed due to that changeover being planned, approved by FCC and implemented. Quite a few of the stocked stores “ran out of stock” there for a while. I wonder why?
•   Buyer’s reviews in that period were not outstanding. Remember this was prior to the upgrading of the Firmware and App, that has subsequently put the IQbuds back at the top – clearly the best in the market and pretty much flawless. And prior to V2.
•   Remember also that they only raised the capital to increase the level of marketing in late July. So the marketing during the period to be reported on, was fairly low level. I am, of course, fully aware that it was in this period (mid June) that the Unboxed Therapy video was posted and viewed about 2 million times! (Herein is a possibility of an upside surprise).
•    During the reportable period, HereOne were still doing well and had a definite head start on IQbuds. Although the download data is only representative of numbers, it clearly showed that HereOne were way in front back then. It is only since then that IQbuds have forged ahead as HereOne have faltered.
•    Also consider the download data for the IQbuds App. While not giving accurate numbers, it still showed in that period that apart from the spike with the Unboxed Therapy video, downloads were still low.

All of these factors are the reasons I am considering a report that will disappoint those who have unrealistic expectations.

I also think it will disappoint those whose expectations are in advance of where the sales are really at.

Personally, I will be taking all of these factors into account when I look at the report. Personally, the only number I will be looking at is the Revenue figure. Personally, I think I might be pleasantly surprised.

But the reality is that I don’t expect to see a financial report that will blow the pants off onlookers until 2^nd qtr. next year. By then of course, I expect it will be way too late to take advantage of the current “artificial” level of undervalue in the share price.

If an opportunity arises after this report, I will happily continue to lower my average and continue to increase my holding. After all, while sales may take time to ramp up, Nuheara is booming as a company and setting itself up for a massive future.

I expect we will all know shortly.