Hi readers
Bubs what's happened and it's lost it lust in the market place.
Will it recover and has the astrology changed.
Those of you who know by know how I analyse companies will know that it's first astrology, then fundamentals of the company, charts only show what the market assumes what the price is or where it's been.
But as we know the human works on visual and the above isn't what's seen by the market.
I laugh at some who end me charts to tell me where a stock is going because of what the charts are showing.
One investor said to me that bubs will be 15 cents by Xmas which is wonderful but how can that be seen with charts I replied.
If a investor throws $20 million at Bub stock the company will be at 75 not 15, so you just need to step back and really think about what analytics your really doing, charts are not and will never be anything but a picture of after the fact.
Fundamentally where are they at.
The Dandenong plant is working more hours to catch up to demand.
Product to supply demand is still very tight, to tight for my liking but they are expanding livestock.
Sales are continuing to increase across all markets, both local and internationally.
While there focus is more on the local market at the present time, the international side is increase it not as fast as I would like.
But I can understand that as the supply isn't quiet there yet.
Where are they at with the licensing to direct sell into china is the question, everyone seems to be concerned about!
Complete and utterly irrelevant, I say this because it's now become a political play.
Some of you will be asking questions what do I mean ?
China is holding back from approving as its trying to obtain Australian government support against the US trade war.
A number of companies in Asia are facing this with china deliberately playing political chess for its own interests.
US product is being shipped to china and rotting on the docks with Chinese customs delaying release of product through red tape.
Once the product expires it's then classed as unacceptable and sent back.
Over the last month the Chinese government has ordered banks to not fund companies who buy US products.
So unless the companies buying products are cashed up, no bank will fund loans to buy US products be tech or food.
But you never hear a word of this in the tabloid media, as this will spook investment markets.
So as you can see bubs is hamstrung by events beyond its control.
Has bubs made mistakes absolutely.
This is where both management and the board have a lot of explaining to do.
To be honest I don't know how they can explain it but time will tell.
The board replacing Nicholas with Kristy Carr is a huge mistake, a time aggressive growth to put a learner at the wheel is irresponsible and derelict of duty.
There are far more experienced CEOs around.
Time will tell if this pays off but at the present time this decision has cost shareholders over 35%of there value.
It's obvious that Kristy need to prove that she is up to the job of performing and while I reserve judgement on the appointment its obvious the market and existing shareholders don't share the same view as the board.
While she is the founder of Bub that doesn't mean she will make the right decisions for the companies profitablity going forward.
Yes she might want to see it be successful but that doesn't mean the right decisions will be made going forward.
Last placement shareholders have been burnt badly.
The previous to the last placement holders are being tested with the stock at its current price and with management bringing there friend in at the price (45) it will be interesting to see what plays out.
There's no way BUB can go to the market and ask for money as bridges have been burnt.
So there on there own from there own doing.
The only way they can go forward is to prove to both shareholders and the market that they are profitable and growing by showing double digit growth.
The boards decisions are what have put the price in this position presently.
The above issue with china will over time work themselves out as china needs bubs more than bubs needs china.
With a current birth rate at 27.1 million this year in china I rest my case.
To the Bub board needs to be very careful about awarding bonuses to management at the current suppressed prices as they can and will be all thrown out of there positions at the next AGM, or if prices keep falling then they will be in play.
I can guarantee you that..
Bubs what's happened and it's lost it lust in the market place.
Will it recover and has the astrology changed.
Those of you who know by know how I analyse companies will know that it's first astrology, then fundamentals of the company, charts only show what the market assumes what the price is or where it's been.
But as we know the human works on visual and the above isn't what's seen by the market.
I laugh at some who end me charts to tell me where a stock is going because of what the charts are showing.
One investor said to me that bubs will be 15 cents by Xmas which is wonderful but how can that be seen with charts I replied.
If a investor throws $20 million at Bub stock the company will be at 75 not 15, so you just need to step back and really think about what analytics your really doing, charts are not and will never be anything but a picture of after the fact.
Fundamentally where are they at.
The Dandenong plant is working more hours to catch up to demand.
Product to supply demand is still very tight, to tight for my liking but they are expanding livestock.
Sales are continuing to increase across all markets, both local and internationally.
While there focus is more on the local market at the present time, the international side is increase it not as fast as I would like.
But I can understand that as the supply isn't quiet there yet.
Where are they at with the licensing to direct sell into china is the question, everyone seems to be concerned about!
Complete and utterly irrelevant, I say this because it's now become a political play.
Some of you will be asking questions what do I mean ?
China is holding back from approving as its trying to obtain Australian government support against the US trade war.
A number of companies in Asia are facing this with china deliberately playing political chess for its own interests.
US product is being shipped to china and rotting on the docks with Chinese customs delaying release of product through red tape.
Once the product expires it's then classed as unacceptable and sent back.
Over the last month the Chinese government has ordered banks to not fund companies who buy US products.
So unless the companies buying products are cashed up, no bank will fund loans to buy US products be tech or food.
But you never hear a word of this in the tabloid media, as this will spook investment markets.
So as you can see bubs is hamstrung by events beyond its control.
Has bubs made mistakes absolutely.
This is where both management and the board have a lot of explaining to do.
To be honest I don't know how they can explain it but time will tell.
The board replacing Nicholas with Kristy Carr is a huge mistake, a time aggressive growth to put a learner at the wheel is irresponsible and derelict of duty.
There are far more experienced CEOs around.
Time will tell if this pays off but at the present time this decision has cost shareholders over 35%of there value.
It's obvious that Kristy need to prove that she is up to the job of performing and while I reserve judgement on the appointment its obvious the market and existing shareholders don't share the same view as the board.
While she is the founder of Bub that doesn't mean she will make the right decisions for the companies profitablity going forward.
Yes she might want to see it be successful but that doesn't mean the right decisions will be made going forward.
Last placement shareholders have been burnt badly.
The previous to the last placement holders are being tested with the stock at its current price and with management bringing there friend in at the price (45) it will be interesting to see what plays out.
There's no way BUB can go to the market and ask for money as bridges have been burnt.
So there on there own from there own doing.
The only way they can go forward is to prove to both shareholders and the market that they are profitable and growing by showing double digit growth.
The boards decisions are what have put the price in this position presently.
The above issue with china will over time work themselves out as china needs bubs more than bubs needs china.
With a current birth rate at 27.1 million this year in china I rest my case.
To the Bub board needs to be very careful about awarding bonuses to management at the current suppressed prices as they can and will be all thrown out of there positions at the next AGM, or if prices keep falling then they will be in play.
I can guarantee you that..
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