BUD 0.00% 0.6¢ buddy technologies ltd

@techfacts, if the stock is maxed out why do you still hold it?...

  1. 2,808 Posts.
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    @techfacts, if the stock is maxed out why do you still hold it? That is illogical.
    Its very clear to me that you do not understand the LiFX business. Your suggestion that the deal is "not great anyway" is IMHO so wrong. You suggestion that the revenue rise will be accompanied by increased losses is misinformed and incorrect. Google economises of scale!! The company has already stated on several occasions that it expecting profitability in CY 2019. Buying a profitable company with revenue growing at 70-100% with a revenue multiple close to 1 X revenue and around $70m-$80m is extremely cheap. IMHO, Npat could be in the range of $5m-$10m. But we will have to wait for 8 months to find out if that is the case. Having said that, if that is the case the market cap will be above the $500m+ mark. In previous posts, I have mentioned plenty of asx coy that have far less rev, slower revenue growth and forecast to run at a loss until 2020-21 that have market cap about 700m. AVH have 1.8b shares on issue, rev forecast in 2019 of $17.3m, 2020 $29m running at a loss of $10m pa until 2022, and $800m market cap.
    There are a multitude of similar examples on the asx. Your negative sentiment on bud, whilst you continue to hold is either illogical or incorrect information.
    The $18.1m recent raising, would have required extreme due diligence into both the OHM operations and LiFX business. I actually dont know if Fidelity were involved in 1page and CVT, but hope they were. Just for the simple fact that they would not be making that mistake again, and for an investment to proceed after that happened the level of DD would have sky rocketted. No fund manager gets it right every time ( not even Buffet ).
    IMHO, the stock is so tightly held by the top 20 shareholders ( who have been accumulating, including CEO and chairman) that it will only take one piece of material ohm news to get the share price back above 15c. The volume is so thin, its appears to be musical chair between a few retail day traders. Maybe that's your space and the reason for your negative posts. If so, all the best with it.
 
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