The BWX Limited (ASX: BWX) share price is up 4.3% to $1.45 today after multiple choppy trading sessions since the group coughed up a big profit downgrade on December 2o 2018.
Before Christmas BWX's newly installed management team warned the group behind the Sukin natural beauty products brand now expected to deliver EBITDA between $27 million to $32 million for the fiscal year to June 30 2019.
It also expects EBITDA to be just $7 million for the first half of the 2019 fiscal year, which means you don't have to be Warren Buffett to see it's perhaps optimistically forecasting a far stronger second half.
The BWX share price is now down 81% in the past year on the back of its admissions that its U.S. acquisitions made by the former CEO and CFO are not performing as well as expected, while sales of its Sukin brand in Australia have not grown as well as hoped.
The poor recent track record, debt fuelled acquisitions, and optimistic looking guidance are all adding to the volatility in BWX shares. Worryingly, according to the latest ASIC report, BWX still has 12% of its shares on issue shorted by traders speculating that there are more share price falls ahead.
