Ann: Nestle announced as a new Buddy Ohm customer, page-51

Despite the best wishes of most HC posters, the reality is that BUD has been put on notice and must now prove it can deliver on many of its recent claims.

The market is rightly sceptical about future earnings. And should remain so until the dollars are in the bank.

This is why the ASX questioned the reasoning behind such claims of future income. And while a hefty degree of reputational damage occurred during the suspension period.

I admit I have no idea as to the various reasons why BUD is considered and often written about, by some HC posters, as sounding more like the Church of Davology, rather than a start-up tech company with a well-designed bit of kit. Therein is a warning sign. When investors get the Messiah bug and firmly believe a single person (in this case Dave) will deliver them to the Land of abundant Buddies, it becomes all too easy for an investor to swallow whole the mythology rather than remain focused on the clear light of daily reality.

Another warning sign can pop up when a fresh company (particularly in the tech space) manages to land a deal with a subsidiary or small one off sector of a huge multinational and then attempts by listing a few of that company’s features to associate further and future deals with this same multinational.


Such ‘sold’ reality borders on in-genuineness. Simply because such announcements rely on a degree of unknown details and a very hefty degree of technical naivety and ignorance on the part of the (BUD) investor.

The parent company of Nestle would have invested tens of millions of dollars in building management services over recent years. Nestle Europe would have best in class software and hardware that can be monitored literally from anywhere; and across a whole range of parameters, not just energy.

That is why I do not believe Buddy could be anything but a niche item for a huge conglomerate like Nestle. Who knows (hopefully) in a decade maybe circumstances and product range will be vastly different. But I deal with what is real and not what is to be discovered.

The point that needs to be understood is this: the Nestle announcement is hardly material in the future fortunes of BUD. It was made a big deal issue because Dave and co need to support the share price at every opportunity until revenues arrive and normalises their business model.

Until then BUD investors need to take profits and expect significant volatility in the share price.

Broosta