Adding to your thoughts, there's also potentially a big difference between profitability and cash-flow break-even depending on whether you are looking at the financials or the cash-flow 4c.
A company can be profitable on paper (based on accrual accounting) at the same time as cash-flow negative (this is especially the case for companies with fast growing revenue). This is an important distinction to understand so be careful how your read into the 4c numbers and financials later this year as they are presented.
Cash may still be tricky by years end even if profitability is achieved on paper, especially with the stated expectation for having to "stock up" ahead of Christmas - so in many ways that quarter could end up looking pretty ugly from a cash perspective as stock is bought & delivered but receipts are not received until the March 2020 quarter (unless the receivables are brought forward by the debtor financing facility that they are trying to set up). Ostensibly if all goes well lots of cash should arrive in early calendar 2020 but until then BUD will face some pressure for funding inventory and trade receivables in my opinion - the debtor financing may help this if it's fine and functioning by then.
Interesting times ahead. If they can successfully finance the rate of growth in LIFX (and the growth is achieved as planned) then that will go a long way to de-risk this investment. At the moment, in my personal opinion, it's still tricky. As for OHM, it's a sideshow for now.
BUD Price at posting:
4.8¢ Sentiment: Hold Disclosure: Held
