No worries. I too think it will be tight but the growth in...

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CraigWheel

53 Posts.

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28/07/17

12:06

Post #: 26138529
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Originally posted by FreeYourself ↑

Haha ye i worded that badly. My original post stating it said significantly less cash that expected burn.

Q End 30/9/16 - Cash $4100k - expected burn $3184k - actual $2708k
Q End 31/12/16 - Cash $2820k - expected burn $3020k - actual $2778k
Q End 31/3/17 - Cash $2078k - expected burn $3777k - actual $2765k
Q End 30/6/17 - Cash $1592k - expected burn $5269k - actual?????

I agree, last Q they had almost half of the cash of their expected burn and that was a red flag for me then. But their actual burn wasnt too much higher and given we are talking a 3 month period here they managed to juggle it. But look at the disparity between this Q. You cant juggle that unless you receive upfront payment, or you organise credit with your suppliers or you raise capital.

Cash flow is getting tight. Maybe they will raise, maybe the wont. But it will be tight this Q. Their kids will be eating cereal for dinner sort of thing. The fear of a raise is powerful

I like MSP for LT for sure, but just wanna see it cash flow positive and gross margin growth outpacing revenue growth

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No worries. I too think it will be tight but the growth in production costs is compelling. They have stated that costs for AVA are forecast to rise 10% for 2017/18 so the increase in production cost must be from BQT. To almost triple production from quarter to quarter is a smoke signal. There is also a large jump in advertising cost forecasts (15 to 55) which is interesting.

MSP Price at posting: 2.7¢ Sentiment: Hold Disclosure: Held
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