It is interesting to see how the group of contributors in BUB has changed over time. I bought BUB in August 2017, bought again in July 2018 and then sold all in March 2019 (just before the big breakout to $1.60 a share ). I sold because the constant up and down of the share price was not good for my nerves. I also sold because the gross margin of the product appeared permanently NEGATIVE. During the period of my holding, there was contributor, something like ...59, who steadfastly pointed out that a company worth its money should be cash flow positive. He was constantly hammered for being a 'downramper', and asked to go somewhere else. ... Now, many months later: for BUB nothing has changed, no surplus in sight. On HC, the demographic for BUB entries are a set of new names. ....hmmmm
If your neighbour came around and said on a cash flow basis: I have a product that I sell for $66 and make it for $64, I advertise for $11, the office rent is $6, and I pay myself $5.80. In short, incoming cash $66, outgoing cash $87. ... I know I make a loss in 2020, as I did in 2019 and 2018. ... But there is hope ... in China. WOULD YOU LIKE TO INVEST WITH ME???
I think the current CR proposal is somewhat akin to the above.
See it from a different view: What do you get when you invest in a share that has no profit? ... You acquire a right to participate in future profits, i.e. you hope (or that hope is sold to you), that there are future profits. They may no be paid out (see A2M), but the share price will reward you. BTW, with A2M I held my nerve (mainly) since I bought at $4.39. But A2M has a different product and management.
Investing in Chin as BUB does, buying or committing in production facilities, IMHO, is capital expansive and fraught with problems - culturally, legally, administratively .... Also, BUB will be losing its coveted name recognition, i.e. made in Australia. It is that type of name recognition that drove BAL, drives KTD, and to some respect A2M.
A leading economist once posed: As long as economic (GDP) growth outpaces the growth of public debt (accumulated), there is no problem. Me thinks that BUB is somehow similar: As long as sales growth outpaces growth rate of shares issued, there is no problem ... with profit in the short term with optimistic investors (looking for a re-run of A2M)
... of course, I could be all wrong.
GLTASH
BUB Price at posting:
91.5¢ Sentiment: None Disclosure: Not Held
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). I sold because the constant up and down of the share price was not good for my nerves. I also sold because the gross margin of the product appeared permanently NEGATIVE. During the period of my holding, there was contributor, something like ...59, who steadfastly pointed out that a company worth its money should be cash flow positive. He was constantly hammered for being a 'downramper', and asked to go somewhere else. ... Now, many months later: for BUB nothing has changed, no surplus in sight. On HC, the demographic for BUB entries are a set of new names. ....hmmmm
(20min delay)