there is nothing in the announcements that indicate that Visa or any of the partnerships have to spend money, the partnership may be for 5 years, doesn't mean revenue streams are going to be worthy so hence I think the market is aware of this..
I have concerns regarding the forecasts, I would like an explanation on why the cash burn is expected to dramatically increase in the first QTR of 2021 while the incoming revenue also drops off... seem like there is a play in the forecasts to get the market excited on the lead up to the end of the FY20... but then the revenue drops off and the cash burn heavily increases again especially in the Sept forecast as shown below:
Maybe I am missing something here... the cash burn looks to be heavily increasing in the Sept forecast while the revenue drops off... I dont know how accurate these forecasts are expected to be, however the Q2 Q3 and Q4 for FY20 could be somehow pushing the cash burn into the following FY so as the Qtrlies will encourage market again pre end of FY20, may also be a way for Sophs to get their money back above 3.6cents... something smells fishy to me... what story are these forecasts telling us?
If the forecasts were anything to go by then I would consider entry at these levels, but avoid holding in 2021 as 9sp thinks revenue is going to drop and cash burn is to increase, just my opinion not advice... I dont know how else to judge these forecasts to be honest, Im a little surprised at them, I would have expected the revenue to be constantly increasing as the partnerships gain traction..
any one else got thoughts here regarding these forecasts?
