Non holder here. I’ve held BUB in the past and I’m keen to jump in again as I think the long term looks promising.
Is mid 60c a good buy or will there be more downside is what I’m trying to figure out.
My short-medium term concerns are:
1. Struggle to see how Q2 sales rev is going to be any better than Q1, if not worse and this is simply a consequence of Covid. No amount of above or below the line activity in AU is going to backfill the lost diagou sales. Fixed overheads that come with a manufacturing asset remain regardless of the sales line will bite
2. The timing of the vits and sups entry wasnt great IMO, although I’m sure work began on this project well before Covid. I can see how the BUB brand extends into this space, although ensuring this play is successful will be costly and another capital raising exercise cant be far away
In terms of the positive and why I’m considering jumping back in.... domestic AU foundation is well established with compete ranging across the majors, manufacturing partnerships with Bega and Fonterra and a company owned asset is in place. Crazy to think that before this was the case the SP managed to hit $1.50! Talk about ‘buy the hype’. Sooner or later the Chinese students will return and the flights will recommence. Will that recovery begin in 2021?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)