Credit to them if they turned it around but the next 4 quarterly cash receipts after acquiring 29.7m in expected revenue in the June 2019 quarter were: Oct 19: 6.5m, Dec 19: 7.6m, Mar 20: 8.3m and Jun 20: 8.1m Totaling 30.5m. So either keytone turned over 0.8m and crashed its own operation, Omni didnt live up to the numbers to a significant degree, or there is a massive timing difference even over the course of a full year. I dont think covid is a real excuse because food stocks were actually going through a growth period in the intial panic which i imagine more than offset the shipping issues experienced later in 2020 (these 4cs only go til June 2020)
I guess these numbers dont matter if the current numbers are better but as soon as the 4c's dont add up to the investor presentations i get weary. This isnt a bank loaning money where the 4c isn't going to be a true indicator, it should track revenue pretty consistently over the long run and there were serious question marks. The company would make claims like 450% growth in the October 4c to 6.5m(implying 1.5m revenue in Oct 2018) which seems misleading when really that is significantly under market expectation (1.5 flat from last year + 7.5 average omni acquired rev = 9m total) Many long term holders were confused including myself and luckily i exited in the 30c range compared to todays price. If you back the company now good luck and honestly all the best, youll make your money if youre right, but i do feel like new investors should take a long hard look at whats gone on and come to their own conclusions on if they trust management.
Cheers
HLF Price at posting:
10.0¢ Sentiment: Hold Disclosure: Not Held
