KmTw, cash is always king. Revenue is important but so is GP and operating overheads. Some people think revenue is king. If, as BUD was doing a while ago your GP was so low the gross profit covered less than 50% of overheads you just go broke faster by increasing revenue than by increasing margins and lowering overheads. BUD has always struggled with this concept and hence the reason they are in their current predicament.
Like to believe the overheads are now sized to actual turnover and margin. If they can produce a positive operating cash flow each month for the next 12 months they might survive. That is if the greedy financiers dont start playing their unscrupulous games again.
BUD Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
