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11/09/19
15:53
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Originally posted by Holdtight
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FWIW i think this is a solid 4C. There is no CR coming this year. The cash last quarterly was $5.8m and this quarter $3m and that with $1.7m in legal fees and $700k in restructuring costs as one offs. The debt facility will be in place next quarter and the inventory build up using the current cash was a very clever strategic move.
Remember $14m in inventory is the cost of goods...( my guess is about $13AUD for the A60 which retails for $89AUD ) Thats a lot of inventory bulbs, strips, beams and tiles. Great to see the 93% growth at Amazon outside PRIME DAY which was in July!!! The Assets of the coy ( cash, receivables and stock) equates to approx $20m so with a market cap of $80m this is wrongly priced as we move into the best 2 quarters of the year.
With regards to Tim leaving, this does not faze me. Timing is unfortunate but the big end of town can offer a lot more than BUD. He was put into the job 12 months ago by Marc and is not responsible for the overall success/growth over the 6 years of the coy. Marc is the founder but never wanted to be the CEO. Tim was on $350k USD ( $500k aud) Almost twice what DM is on. He also forfeits his performance shares which go straight back to the coy. Tim was doing the job from San Francisco!!! A good CEO needs to be with his staff in Melbourne. Tim's expertise has always been in WIFI and he moves back to that industry. IMHO the new CEO should have experience expanding a global business, with LIFX has become. I am sure DM will find the right person.
Bring on the profitability and revenue. Cant wait for 31 jan 2020 quarterly.
P.S great to see OHM still selling smalls despite OHM/WW being in trial for the majority of the quarter.
DYOR
and
HOLDTIGHT.
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Hey Holdtight. You seem so strongly upbeat about every bud announcement and you even confidently claimed no CR this year. Your linguistic gymnastics to frame every BUD announcement as an only positive news is actually pretty impressive. Since your buy recommendations at >8c , people who followed you would be down 75%.