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Evening Wyndrum, You're absolutely right of course on the hybrid mattresses (and wouldn't disagree with anything else you've written) but what I like about the extras (hot water bottles etc) is that they shows a maturing in the brand (and presumably they are not selling these things at a loss) so a certain confidence that shows they are not hanging on by their fingertips any longer. That wasn't always the case.
I intend to sell my IAG shares as soon as the rights are paid for (HL say Thursday?) out of my account and I may use the cash here at Eve but I'm also interested in Snowflake in the USA. There isn't a board for them here on LSE so forgive me. They've just had their IPO and I have no idea if the price is high or low but what they do – cloud storage – seems to have quite a future. A dad at school works for them and that's why I noticed them. Anyone, pls do your own research – and don't blame me!
I'm only posting because I will likely buy back in at some stage.... but.... imo Do not buy eve based on a soft toy or a sleep spray, or a hot water bottle.
There biggest selling item is a hybrid mattress..... What does that tell you.....?
Some posters think the share is being shorted... Why would you short Eve, if they should be 10p? Brokers make money on the spread, and god knows the spread is fine here...
The rise from 1.2p to give or take 5p in 3 months is fantastic. The next leg up beyond 7p will be profit driven.
My previous early (some would say neggo) reservations apply at this price except that eve seem far more stable now and crucially have time to develop other revenue streams and a gradual re-introduction of advertising spend to drive sales. And in the on-line mkt you cannot avoid this.
They still need to tread carefully but as of today good progress thus far and the SP seems to me about right.
By all means buy now but its still a risk and at best now a long term (12-24 month) play based on CC's update.
(The only criticism I have is the 3rd of sept "above expectations" RNS: it really wasn't all that compared to the actual update , and I think it really sucked out the oxygen of any immediate momentum. The only caveat to that and being far too clever for my own good, is that it allows a stake builder to carry on at half the price it could have been...maybe.... but that's just my latest conspiracy theory...) Anyway, the market is usually right....
Excellent RNs last week and MMS has taken this down. This should be in the 10's plus. Such a big fall from great heights. Many buys and sells. Should be seeing a tr1 on buyer or seller. Also feel this stock is shorted.
Tropic (part owned by Alan Sugar) sell a lavender sleep spray, it retails at £20 for 70ml. Hopefully they are on to something. GLA
You're absolutely right goodapple. The range now bears no recognition to their offering when I first started to follow Eve, when they had one single mattress available in single or double size. If they make money on scent, hot water bottles sleep notebooks, as well as soft toys, there are few products that will be off-limits for them (maybe caffeinated coffee, but Eve-decaf, certainly.) Most stocks took a hit today (and I have a couple of them; IAG for one) but Eve shouldn't be too worried at the prospects under the covid shadow.
I see the future value of Eve being its ability to develop the "Sleep" brand into all sorts of associated products which will reinforce the brand message. As such I welcome the venture into the 'gifting' business with Boots Chemist from this autumn, which I am sure will do well. All examples of Eve branding that I have seen are good, and evidence of clear thinking and (lots of) money spent. The new marketing initiative should build on all of this, and also recognise and capitalise on the opportunities which (sadly) Covid-19 lockdowns present.
i think the point of the TIM article and the recent RNS is that Eve have been profitable for the last 4 months and the the CEO has said a number of times their marketing returns are profitable. Therefore as they increase the marketing we should see increasing top line and bottom line returns from that spend. Spare a moment to consider that Eve actually generated all this cash with largely no advertising and just based on brand, recommendations and articles. Can you imagine what it will be like when Eve execute further marketing. Therefore at the end of the year the £10m or so in the bank will be still be there and probably increasing, although if they can deploy that to increase shareholder returns then so be it. I think the BOD are taking their time and making good decisions. I am however in agreement with you that next year if Eve are not worth around £30+ then they will probably come under a low ball offer around 20p because of the likely consolidation. There are ample companies looking to buy a brand that has had £60m+ spent on it since inception and well known. Eve has a stellar brand for premium hybrid mattresses and it is the premium end of the market they are going after.
DG From my I assessment and information releast I taken it as this was there plan from very early on. There's two reasons they made that choice, to bring the company back into profit by cutting cost, and using the credits already paid for to promote into autumn and winter, the busy period based on historical information.
My point being we are playing with different cards now and they should of seen the growth during the first lock down period instead it's my view they runout of products and staff to meet the demand and didn't take the signs seriously anough to change policy, instead followed the instructions from the MMS who were no doubt looking for the placing in December at around 8p. That's not going to happen now. Eve have anough money to do one more descent campaign then will need to raise, my take is this will show a profit Q2 but that and more will be needed to get this to a place all investors wish to be and targeted advertising still isn't cheap but wish them well. The only light on the horizon is a buyout and in this flooded market the price will be reflected in the sale price.
Wongtogo, Did you see this in yesterdays share tip? "the TV marketing campaign it is planning for this autumn to bring in new orders."
So looks like you'll get some of what you ask for. I haven't seen the campaign mentioned before but I don't read everything!
They've tried fast and loose with cash before and it didn't go so well. CC seems to have it about right, for my taste anyway.
on the marketing side the last piece of the turnaround jigsaw is they signed with Folk, that are a great agency, and they proved that they are making profits from their existing marketing. They can now can push the button knowing they have the right products at the right price and therefore we should see rising revenue and rising profits. Turnarounds take time but Eve management have played a blinder since last December and it is pretty hard to fault them and i suspect they will get the marketing right as well, given the CEO is the ex marketing director so that bodes well. you might hope she knows a thing or two. This is a recovery play like no other.
@wongtogo
Errrrr Q2 Sales went up 25% and guidance has been upgraded?
I've said before, when the new strategy was put in place they exited several sales channels and in some cases entire markets (Germany) - This pushed sales down a long way. The fact we are basically 'level again' proves that the sales we are targeting are growing and have been for a while.
Everyone entitle to his/her opinion.....I actually disagree with yours.....EVE had its troubles in the last few years, hence the massive drop from over A pound SP to below 1p....HOWEVER, things changed mattiryely recently with a complete different approach which already showing some decent results (moving to breakeven and profitability in recent months....)they are cash positive now and fairly holds decent cash reserves...signs are there for continuity so they could even do much better....IMHO.
Time will tell....
GLA.
The figures from this time last year are better, how anyone sees this as turning around is beyond me when we have had every opportunity. it's not good enough to make a profit short term with cutbacks and destroy your business in the medium term by not investing , everybody else in direct sales seems to of made gains 15% to 135%.
It's simple in this game you either advertise and promote the product or simply fall back Eve talk the road of no promotion and you see the result in that. Very disappointing.
Sorry about the multiple postings....seems like LSE keep crushing this morning....
Good start considering Friday drop and the overall market turmoil....the second wave of the nasty pandemic is a big worry but EVE has everything in place to do well during this difficult time....
Most important though is to stay safe.
GLA.
Good start considering Friday drop and the overall market turmoil....the second wave of the nasty pandemic is a big worry but EVE has everything in place to do well during this difficult time....
Most important though is to stay safe.
GLA.
Good start considering Friday drop and the overall market turmoil....the second wave of the nasty pandemic is a big worry but EVE has everything in place to do well during this difficult time....
Most important though is to stay safe.
GLA.
Good start considering Friday drop and the overall market turmoil....the second wave of the nasty pandemic is a big worry but EVE has everything in place to do well during this difficult time....
Most important though is to stay safe.
GLA.
Very fair coverage....and probably will tempt few punters that following the Mail Midas tips....
Hopefully they will buy the products and the shares and enjoy both rather than sleepless night's....
GLA.
Eve shares tipped thisismoney By ROSIE MURRAY-WEST / FINANCIAL MAIL ON SUNDAY
'But there's the possibility of a real turnaround story here if Eve can leverage the TV marketing campaign it is planning for this autumn to bring in new orders.'
https://www.thisismoney.co.uk/money/investing/article-8750569/MIDAS-SHARE-TIPS-Eve-Sleep-bet-miserable-winter.html