Ok I’ll bite. Art is right on this one. BCC play accounting...

Ok I’ll bite. Art is right on this one. BCC play accounting trickery by capitalising R&D costs, which is found in the investing flows. This is REAL cash but they do this to make EBITDA look better as they don’t expense this item like larger companies do. It’s quite common for companies that have weak operating cash flow or are in cash burn mode.

Anyway, nothing to see here. The 4C was slightly better than I expected but it’s still playing out as I expected, which is some weakness supported by small increases on news flow. This is still heading lower in the very short term unless they announce European expansion, which would be very positive.

Ironically this SP weakness actually works well as we need Michael and the board to put out a detailed investor presentation showing the economics and upside in the JV. As I’ve mentioned before I don’t anticipate that this will happen until after or at the full year results. If they don’t put this out then I’d probably reduce my portfolio weight here as that is the driver here and while I’m confident I’m right, ultimately if this stays as a misunderstood stock then really I’m wrong as the market is always right.