just watched the buy hold sell (https://www.livewiremarkets.com/contributors/buy-hold-sell smok'n small caps) where a panellist suggested the BVS result was poor quality - lumpy earnings, poor cash flows and needed to move to a recurring revenue stream model.
I accept the poor cash flows in the period - big increase in trade receivables - but I understood the revenues were mostly recurring. Eg, this is what slide 13 of the August 2017 presentation says re: Sonata. ie, 129.8m of recurring revenues, $15m of licence revs, out of a total of $191.9m. The comment on that slide also says: "Products are typically provided on long-term contracts of five to 10 years’ duration, which provides a recurring base of revenue from existing clients and a high degree of certainty around future cash flow".
Am I missing something (and need to dig deeper) or just another rent-a-quote fund manager with partial info.?
BVS Price at posting:
$1.69 Sentiment: Hold Disclosure: Held
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(20min delay)