Ann: Half Year Accounts, page-56

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McKhenry

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04/03/19

23:10

Post #: 37650827
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Originally posted by Holdtight: ↑

1Ronnie, why do you insist on spreading falsehoods. That is not what we have been told. What basis do you have for "your analysis". Have you spoken to either LIFX or BUD management teams?
We have been told that revenue is expected to continue to rise 70-100% in 2019 and that Jan was up 100% and almost broke even. Looking forward to hearing how Feb went. If they continue to break even until October they will have a very substantial EBITDA, as the majority of profit in these types of companies occurs in the last 3 months of the calendar year.
We were also told that 2018 would have been profitable if it weren't for the September US tariffs. According to the press out this morning on bloomberg *MOST OR ALL U.S. TARIFFS LIKELY TO END UNDER U.S.-CHINA PACT.

We have also been told that the margin of 30% is expected to move towards 36% in coming years. This makes sense as volumes increase and the manufacturer is no longer the owner and need to provide a more competitive manufacturing price.
Further, we have been told the capital constraints of prior years had handicapped the revenue growth. Given the escrowed share milestones, they obviously expect greater than 100% growth.
We have also been told that Bud plans to save on transportation costs (Sea rather than air) by better planning orders. This can be achieve as they will have access to a debt facility that they did not have before to manage cashflow fluctuations.

Add to all of those that we have been told BUD will cut costs and increase revenue to get to breakeven by the fourth quarter.

By the end of the year, what you will left with is a $70m-$100m revenue coy, with a positive EBITDA, with quite possibly a whale finally landed.
All of this is IMHO.

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Hopefully our supply issues with LifX aren't costing us market share, not being able to fill orders (Amazon) not a good place to be

BUD Price at posting: 6.4¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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