by putting on the rosiest tinted glasses in my collection, revenue was over 4 mio, production /manu was 2.9 mio. Issue really comes down to margin earned. we do not know cost of sales against revenue. There is possibly about 30 to 90 days lag from supply to receipt. The rose tint would hope that the 2.9 mio covers a higher stocking level than that sold (units) to cover the Nov/Dec periods. The hit is really in wages and corp (which will be wages and rent mainly) of nearly 1.9 mio. On a 30% margin, assuming revenue units equals restocking cost (huge assumption that we are all hoping is grossly wrong I.e we want re stocking unit higher than those sold for that expense revenue equation), then we need to double the revenue to simply cover wages. Coming up to the Nov/Dec period this is of course possible, problem will be maintaining margin that retailers like Amazon, Walmart KMart, etc will demand. So trying to make sense via this sort of cash flow is fraught with danger. Some pretty big if's in the above and now is the time for the sales department to perform. GLTA, DYR, do not hold your breath and please get vaccinated so you can go shopping to buy this stuff (yes I know you can get it online).
BUD Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
