BUD & using personal experiences

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Question asked 19/01/2021

BUD & using personal experiences

“Hi Team, I was wondering if you had any thoughts on BUD? I have a small position (<1%) at 0.012/share, from June2020. I bought one of their light bulbs over Christmas, and whilst it is a pretty cool light bulb, the connectivity was a bit painful. That said its no worse (or any more annoying) than my SONAS Beam speaker which also relies on the home Wi-Fi connectivity - so not sure it’s a particular problem with LIFX Bulbs or just typical for home appliances that connect via home Wi-Fi. Nevertheless, my experience has made me think about cashing out of BUD (around 0.046), but on the other hand, the share price was substantially higher in Sept (0.09) and ideally I’d prefer to hold off until after June to get CGT relief. I feel it is a fairly small company that have managed to create a position in a large market. I guess my question really relates to how you much emphasis you put on personal experience of a product versus investment analysis?” - Thanks and regards, Nick R.

Answer

Morning Nick,

BUD is a $150m cloud-based data management platform business that’s promised so much on a number of occasions only to see its shares drop by significantly more than 50%. This is not a company I know well but it reminds me of too many Australian small caps that enjoy aggressive run ups before falling back very fast when the music stops playing, to us these can only be played technical with all focus on risk / reward and at present BUD around 5c is in no mans land.

Your question about personal experiences is an interesting one and I think worth highlighting. Much like Peter Lynch in the last 70’s through 90’s, I think using personal experiences are an incredibly valuable tool plus also understanding what kids are into, another valuable source of idea generation.

BUD

MM is neutral BUD.

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LAST UPDATED 19/01/2021 11:39

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