Ann: LOI signed to acquire assets & business of Noveda-BUD.AX, page-102

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oggy0907

1,942 Posts.

19/05/16

15:37

Post #: 17814781
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Originally posted by thecrabpest ↑

I'm a massive fan of this company and I think Dave is an amazing CEO.

Unfortunately I had to sell out (at a loss) to free up some capital, and I checked back to buy in and Buddy is in Trading Halt and then Suspension. Things are kicking off. Timing is a bitch for me, but congrats to all holders.

My thoughts on this are it is obviously positive, a relatively small purchase, and BUD only has a market cap of $35m, which it has lingered around for some time now so I guess it is fair value.

The whole Noveda deal will have a maximum value of $30m so we are looking at a total of $60m, maybe a doubling in share price, if the market values it like that.

How much will this deal add to the share price? I don't think it would sustain doubled share price in the near term, and I think the share price will spike then drop back down slowly until we start to see more revenues.

This is a long term growth play by Dave, and over time, like many have commented, this will add significant revenues for the business. The market can be impatient however.

I am hoping for all holders a 30c relisting, but I will be looking to buy back around the 15c - 18c mark (if it ever comes back down there).

We will need to see some "actual" financial details on Noveda (revenues and profits) before we can see how much immediate value is there. If they aren't making money, I can't see it adding significant value (sustainably), unless their growth is exponential.

Well done to all, wish me luck with my 15c - 18c buy in target. If it doesn't come down I will bite the bullet and buy where I see value.

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Buddy's market cap is $102m....based on all the issued capital including escrowed shares. The asx only show the free floating shares

BUD Price at posting: 13.5¢ Sentiment: Hold Disclosure: Held
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Ann: LOI signed to acquire assets & business of Noveda-BUD.AX, page-102

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