Mail from Dave., page-3

The chart for BUD shows that it is highly oversold. The support level is at 0.079 which is where I drew the line.

I noticed that the key drop was on Friday 14 Oct and Mon 17 Oct which shows that someone with a large holding exited (about 5 million shares traded), causing the price to plummet from 0.11 to 0.094 with a low of 0.085 on 14 Oct.

17 Oct was probably an over-reaction from the previous Friday and about 1.3 million shares traded brought the price down to 0.087. 5 million shares is not a lot of shares and I have seen investors sell out because they need cash urgently. Not sure who is selling or what their motive is but the volume traded since then does not look like they did it to force BUD's price down.

My positives from this is that not a lot of holders are selling which means that they believe in the company and expect to at least break even from their holdings of 0.16 plus.

The 0.10 sophisticated investors raising does not show that these investors have exited which bodes well. The market has tested 0.079 5 times now and it has kept support. Very few holders are selling into this. I hold quite a few shares and belong to the long term crowd. Price decreasing on low volume is good. If the sophisticated investors are not selling, neither am I!

Looking at the depth, there are very little shares for sale until 0.099. It does look like some games are being played for someone who is accumulating. I hope that this finishes soon so that they can let the share price run.

The negative is that there are only some buyers and no exciting news to draw in new buyers which is why the share price can fluctuate so wildly each day. Buyers are holding off until Noveda and Parse news are announced, which is not long now. Once this is done, and Parse revenues are known, it will re-rate.

The next two resistance levels are at 0.115 and 0.155.

My take is that BUD has found its floor. In fact, I find this to be the best time to buy (which i did) but dyor, it may not be right for you or your circumstances.

Dave continues to show that he is meeting his milestones earlier than expected and confidential discussions with major customers are still taking place, which he is not able to share.

There are no bad news that I can see happen that will bring BUD's price down. I do expect Noveda to be approved by the anti-competition authority. At the moment, it is just a waiting game for the re-rate. Not very exiciting but I am not worried about the FA of the company.

I am parking my money in BUD like I do for other ASX 50 stocks. I am waiting until they become the mega IOT company that Dave has set out for it, probably around 2018.

DYOR - I still hold onto my dream that if BUD becomes a major IOT business in the smart energy area, Microsoft will be forced to buy them out as it competes directly with them!

As a consolation, most holders are down 50% or more. See Bellamy's last Friday's 43.53% drop with potentially more sells on Monday due to margin calls, etc. Every company gets hit, people take their money to new spruiked up ventures. Eventually, the money will come back to BUD when they realise BUD's strong fundamentals and excellent management.

The stockmarket tests your patience but keep your wits and you will win. Pick the right shares, don't expect that they will double overnight that other investors on HotCopper seem to have as their time expectations. Buy when others are fearful (once you have done your own research of course).

Best of all, I am excited to see what 2017 brings and happy that Dave is still leading the team to bigger ventures.