Not sure you can completely discount the effect of the escrow...

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dman0

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13/12/17

13:02

Post #: 29597078
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Originally posted by goldbear77 ↑

its got nothing to do with escrow etc

imo the market is 'sick' of 'mou's that dont guarantee sales. having a distribution agreement isnt any guarantee you will get even a single sale.

the market regards the stock is 'overvalued' based on its current actual earnings and also on a risk weighted view based on its guarnteed contracted minimums.

so what i expect youll see this morning is 'sell the news' from traders.

as @87crash mentioned - though incorrectly as this deal is neither +Tesltra nor 'monster' - but the market has been 'conditioned' by the Digicel deal to 'want/expect' high minimum guaranteed revenues

but in fact Digicel markedf the 'top' and most of the channel agreements since have been increasingly less convincing in terms of guaranteed revenue commitments that the market can price into the stock

this doesnt even have that. so its near to worthless to the stock market up until there's information that shows sales are flowing from that channel.

if the stock was $20M mkt cap this would be huge news and drive sustained uplift in SP.

but at $300+m mkt cap and something like 150+x trailing price/sales ratio with some profit taking among the big winners in small tech like BUD and KNM showing recently - this isnt news - becuase it has no substance in relatyion to what investors regard as substance.

i doubt any sophisticated investor would buy now for american sales that dont start to get proven until 3q 2018cy results

doesnt take way from the fact that the business has another positive potential distribution channel alliance.

its an essential step.

just not a materially 'valuable' one in terms of how informed investors price stocks

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Not sure you can completely discount the effect of the escrow shares mate. Might take a bit more time for those and the cap raise shares to flush through the system....but it's all good if you trade/invest on longer timeframes.

Last edited by dman0: 13/12/17

BUD Price at posting: 32.0¢ Sentiment: Buy Disclosure: Held
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Not sure you can completely discount the effect of the escrow...

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