It is not a narrative, it is basic business. The problem historically for NUH is it has never had a serious retail footprint so it has never been able to generate volume sales. Nearly every 4C people are complaining about lack of sales, but how do they acheive sales if there is no scale in the retail footprint. They can't. They now finally have a serious retail footprint with over 5000 POS under a recognisable brand HP. They have never had that before. They were never going to get serious sales with only 300 plus POS, but with over 5000 POS, that will get far more sales. But the complaint now is that those 5000 plus POS are not as people would like. It is far better to have over 5000 POS rather than 300? Yes, advertising would help but they will still get far more sales by having access to 5000 plus POS. OEM/s do solve allot of the company's ills and for a company like NUH. OEM's involve serious volume and payments upfront. A typical OEM would be around 50k units and a non OTC retail OEM would involve significantly higher volumes. If they do land a deal or two it changes the company overnight as it provides money upfront and industry recognition but also allows subsequent deals to be easier to obtain.. NUH is really a platform company and the ROI is far greater leveraging the platform. Leroy appears to undertsand this where as Miller doesnt I dont think Justin Miller really understands the business he is in and we may have to wait until he exits and NUH gets a proper CEO to properly leverage the company's platform.
NUH Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
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