I am quietly happy the market hasn’t seen how cheap BEE currently is. I can keep snapping it up, hopefully it stays low all the way till the next quarterly.
The biggest critics seem to either think;
a. The deal isn’t real ( my reasoning against this: the deal is announced on the asx which means I assume that the whole legal team had to check every word, and the directors had to sign off, it is illegal to lie, and would result in jail time)
b. The historic cash burn means the company will fail (my reasoning against this: it was no surprise that China and upgrading the Mildura Brewery were huge cash burners, both are now complete, Mildura is operating at capacity, this may be why no need for capital raise, China is steaming ahead with very minimal future capital from BEE, as the Chinese have committed to, and it is massively in their interest to market and market and advertise BEE across China)
In addition to this; with a state owned Chinese company (the Chinese govt) commiting to advertising and marketing of BEE across a population of 1.4 bn people and 23 provinces (this won’t be a few phone calls to a local pub and anyone on here who says/thinks that is extremely naive) and the incentive for the Chinese of significant profit, this very quickly will make the brand value alone very very significant.
My 2 cents
BEE Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
