Australia's largest stock trading and investment forum Australia's #1 stock forum

BIG

0.00%

$2.22 big un limited

And the push to $3 begins, page-141

First 141 Last

Share
Profile

Follow
musky45

2,122 Posts.

282

16/02/18

08:56

Post #: 31096069
Share

Originally posted by Gusman1974 ↑

Great explanation, and investors should get the differences clear in their heads. With BIG it is confusing at this early stage due to the amount of cash being received upfront for a subscription based product, thus leading to large amounts of deferred revenue. But I think it is misleading to solely concentrate on revenues and profitability in this case due to the fact that the majority of costs to provide the service fall in the first 3 months. If BIG did not encourage up front payments then they may have had a profitable business but their growth could have been significantly impacted by cash flow restrictions and there would have been a few more CR’s (due to the cash flow side of things, they have needed to pay for services with shares. Good idea but due to the massive rise in SP even management are probably starting to question if this was wise. now they have cash flow and cash in the bank, I doubt they will be giving any more of the business away for services rendered).
Cash in the bank can be used to grow the business, future revenues cannot (other than through taking on debt).

Expand

Agreed, the model combined with the insane growth makes it hard enough to forecast revenue let alone profit. However a few poster have put forward decent estimates based on sound logic. @chakay posted something recently.

I will do some numbers after the HY report and post.

BIG Price at posting: $2.29 Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

HLX

Helix investor makes partial takeover bid, proposing board changes

CCO

The Calmer Co’s Anthony Noble reflects on record breaking FY24

LLC

Lendlease sells off US east coast construction operations in latest global divestment push

TBN

Tamboran kicks off Shenandoah South pilot project with SS-2H well spud

CYM

WA Nifty copper project steps closer to restart with Cyprium Metals inking $40M loan from Glencore

Week 35 Wrap: HotCopper’s top watched; ‘iron ore winter’ has started; Oz inflation @ 3.5% MoM; Harris fracking flip

PYC

PYC achieves key designation for drug aiming to treat blinding eye disease ADOA

Consumer Staples Shine Amid Retail Slump – Key Stocks to Watch

VYS

Vysarn acquires Waste Water Services Pty Ltd for $7.5M; WWS to become subsidiary as expansion continues

HVN

Consumers cautious according to Harvey Norman, as profit slumps 35% in FY24

There are more pages in this discussion • 210 more messages in this thread...

First 141 Last

Add BIG (ASX) to my watchlist

And the push to $3 begins, page-141

Top Stories

Helix investor makes partial takeover bid, proposing board changes

The Calmer Co’s Anthony Noble reflects on record breaking FY24

Lendlease sells off US east coast construction operations in latest global divestment push

Tamboran kicks off Shenandoah South pilot project with SS-2H well spud

WA Nifty copper project steps closer to restart with Cyprium Metals inking $40M loan from Glencore

Week 35 Wrap: HotCopper’s top watched; ‘iron ore winter’ has started; Oz inflation @ 3.5% MoM; Harris fracking flip

PYC achieves key designation for drug aiming to treat blinding eye disease ADOA

Consumer Staples Shine Amid Retail Slump – Key Stocks to Watch

Vysarn acquires Waste Water Services Pty Ltd for $7.5M; WWS to become subsidiary as expansion continues

Consumers cautious according to Harvey Norman, as profit slumps 35% in FY24

Featured News