BUD, page-20

Sadly I believe the LIFX transaction was not done in the best interests of shareholders but that of LIFX owners and Dave. If LIFX was confident of achieving those lofty revenues, the transaction could have been structured to provide 'success payment' as part of the consideration e.g LIFX owners get an additional payment of $x if they meet the $100m revenue target, instead additional dilutive performance shares will be given to them (which is additional bonus to LIFX owners).

LIFX unaudited last quarter revenues (which shot up substantially) prior to the announcement was another cause for concern - to what degree appropriate due diligence conducted to satisfy that they could be sustainable. Then the year-on-year declining margins could also suggest they could be boosting revenues and compromising margins.

I had indicated, though some would disagree, that the market is now slowly viewing this stock as a consumer related stock devoid of 'tech' and accordingly being re-rated downwards to reflect that. And the market is not kind to consumer retail stocks that is bleeding money.