BBTV Holdings 7 Unsecured Convertible Debentures T.BBTV

RE:RE:RE:RE:RE:Wow those numbers are awful

[TakeHighRoad]

CanadianKia, you know full well that you cannot look at the gross profit without removing the effect of the amortization caused by the PPA (purchase price accounting) that occurred on the IPO when BBTV was amalgamated and went public.  The true gross profit generation (ie. real cash generation) is reflected by the adjusted figures and not the non-adjusted figures.  That is why they show them.  To not discuss this when you are analyzing figures is misleading. 

 

I am not trying to be positive, I’m just pointing out the same thing that every analyst is focused on, and that is that the future of this business is Plus Solutions Revenue.  It seems obvious that in a few quarters, Plus Solutions will dominate the revenue make-up.  This is a company in transition as it moves its business from Base to Plus.  In my opinion, the company should do whatever it can to improve its runway to get to profitability (including reduce G&A and other costs) while Plus growth continues.  I'm not sure price action is that important right now as long as they improve their overhead and give themselves the resources to get to profitability.

 

This is a business that will likely generate over $40M in gross profit this year and more than 400 Billion views.  Investors will have to consider what that is worth, currently it is trading at 2-2.5x recurring gross profit (if you factor in the debt).  Thats already pretty darn cheap.