BUD, page-21

First 21 Last

Share
Profile

Follow
MickySea

852 Posts.

150

04/06/19

13:13

Post #: 38899034
Share

Originally posted by 1ronnie: ↑

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.

Expand

Agree wholeheartedly with your last paragraph.

This is obviously not a tech stock insofar as most modern investors are concerned as modern tech stocks have huge margins and/or recurring revenue whereas BUD has neither.

Be bullish if you like, be a buyer at these prices but also be aware of the pivot in business model BUD has taken and the multiple it can carry as a result.

Last edited by MickySea: 04/06/19

BUD Price at posting: 4.5¢ Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

Top Stories

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

HXL

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

Drilling at Lady Ilse suggests gold-copper porphyry, grows footprint for Magmatic

OPL

Opyl forms JV with UK and US consortium to bring products to the world

AAI

NYSE-listed Alcoa Corp joins ASX through key JV acquisition