Where are we? December 2018

At the 8th Aug webinar, reference was made to an extensive review of communication policies and practices following the ASX Aware Letter (which was mostly a distraction following Get Swift, Big Un etc). The company stated that with more confidence in its compliance, it would commit to deliver more news flow this quarter. They said they understood that the market wanted more disclosure from them.

Since then, we have had announcements on expansion of Works with Ohm compatible devices, then LIFX smart devices added, and a new statement of works with Thor/Airstream. Perhaps the most insight was from the Sept quarterly 4C review, where we can see there is an acceleration of sales, increased % of multi-site customers and low churn. There was mention of 501 prospective leads and a reduced backlog of installation.

Nevertheless, the share price has gone sideways and traded in a very tight range since August. We can see from blog posts, Twitter, case studies and the like that there is plenty going on ..... the problem is that there is nothing tangible that we can relate to sales revenue and so far at least, there does not appear to be a big name signing up for the Ohm product, be it as an outcome from a bid/tender or a direct sales relationship. My sense is that this what it will take to get the share price moving. We have to be realistic, they are not going to disclose the number of Ohms sold any time soon. However, I do believe they need to start speaking about customers more, to get the market to pay attention. Even if they cannot name them, they can start to talk more about the type and nature and numbers of new customers in a period etc.

I am personally very disappointed at the lack of traction from / with Ingram Micro in the US. Compared to Spain for example, where they seemed to hold an excellent couple of events with IM & Microsoft in Madrid and Barcelona. Difficult to know how much DM and his team are jumping up and down about this. IMO they are a very professional bunch, so whilst they too will be frustrated I am sure they are doing all they can to get things moving. How much they can tell us, or will tell us, or won't tell us .....is an unknown.

So on reflection, I feel that the last 4-5 months have been disappointing in terms of news flow. But I am quite sure the team is all working flat out and that we should start to get more information as to their progress soon. This year was stated to be all about execution of the product's distribution and at this stage I feel it hasn't gone as well as they would have hoped.

Having said all the above, I believe the current share price has solid support and represents a great entry level. Buddy must be feeling some heat from its Institutional investors who put in capital at 20c at the last raise. We are fortunate they went large and have the cash resources to carry the 4 or so quarters I think it might take to break even (monster deals aside).

I'm holding, will buy more as and when I can, testing my own patience to see things get moving. Hoping for big news soon.

Interested on thoughts of others. It is a tough market out there too, mustn't forget that.