Ann: Major USA Supply Agreements with Kroger and Albertsons, page-65

Well I’m closing my bboz short and buying into bubs tomorrow.

Been reading up on it over the weekend and this could be a growth story bucking the current market trend. I actually think sales will remain sticky for at least 18 months so in this “slowing” market environment, this may be a reasonable bet. I like that their total number of US retail store exposure just went up +800% with 500k cans shipped already. 140m annualised sales is something I’m now expecting given that, what I like the most about bubs, is the wide production runway they have moving forward- it could offer quite substantial operating leverage.

In my view, this certainty of increased cash flows through improved activity and concentration into the US market should help quell impact from global trading conditions. You could argue, being fully vertically integrated, bubs, in the face of so much global uncertainty, is in and of itself a hedge to the cost of declining growth expectations, and so perhaps the sp is likely to remain buoyant if the global macro environment continues to deteriorate.

these are obviously bar napkin musings of course but I’d say a market cap of 560m sometime into the future is not unreasonable. Plus it appears to have support at .60. I was watching the action Friday and thought perhaps the announcement may have the market justifying the increased chance of a lasting and bigger market footprint than perhaps thought, and even I thought, as bubs fell from .86 to .59. I am now in the camp that believes this is only the start for bubs. In any case, I could be wrong, but I’m using tomorrows market panic to buy bubs as I do believe their business model now is undergoing a structural shift, which is why it’s held price??


Gltah and dyor