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Snap (almost) D-G... posted also in the other chat.
Nice to see hey
Couple of late reported buys (after a chunky sell too, a moment before close)
02-Mar-21 16:37:09 7.00 252,246 Buy* 6.10 6.60 17.66k O
02-Mar-21 17:08:38 6.80 230,000 Buy* 6.10 6.60 15.64k O
Indicates some buyers with confidence IMO.
To go back to the original question, the price isn't 'tanking', it's just unwinding the spike caused by people (IMV) misunderstanding the CBD story. There are various stories around (we've created our own CBD products, we've jointly created products with SANA, we've just licensed the brand to SANA) but the bottom line is the we will just be getting some cut from retailing CBD products, possibly even just on the eve website. Some reports even have Cheryl saying it's not significant.
If you look at the Boots website, they stock (IIRC) 67 CBD products from a number of different brands and their own. Amazon also has loads and presumably so do other websites and stores. We're doing nothing that will transform the company.
So we've had lots of new buyers jumping in for a short-term multi-bag based on CBD but also significant selling (notably at 5.47p last Friday afternoon), presumably by people who don't accept that story.
After the results, we will have more information to work with which may justify a higher price but for the moment something in the 4.5-6p range seems sensible to me.
A number of issues here.
Anyone correct me if I get something wrong or I’ve missed something out.
Firstly, and I think general consensus is similar here but firstly they floated at too high a price.
2) Smaller company just really doing mattresses
3) spent lots initially on advertising etc
4) ultimately some mis-management issues that were quite costly
5) Woodford invested heavily into this share and then crashed and burned as we all know and probably a key factor into why we went soooooo low in share price (0.65p if I recall correctly)
So one could argue that it was too pricey in the £1 + regions anyway and needed recourse. Then with the “way” Eve was managed didn’t help and the nail in the coffin was Woodford.
My theory behind Eve being so low was from Woodford.....scarring Eve and to some degree Eve n now. A few of us on here think that if the “fall” of Woodford didn’t happen then we wouldn’t be down this low anyway let alone sub 1p hence some of us thinking we are still very cheap despite a fantastic turnaround.
Relating to turnaround.....
New management (doing a star job)
Revised spend (much leaner and Calverly done (get it?! Clever huh lol)
Expanded product range
Successful brand awareness and advertising
Savvy partnerships such as Boots, Argos, the latest Sana, etc
Yes, covid has helped with online boost but not all because of it.
The ooh la la of a French Adventure
The list could go on.....to why we are now in a great position to wake up and smell the sweet aromas on the horizon (and I don’t just mean cannabis)
User, I can't affect the SP, but what I have learnt is that timing is everything in maximising profits.
(I don't see glass's half full or half empty. I see them half liquid, half air. :0) Truly)
Right now I don't see much more that 20-30% rise ( from here ) in the next couple of months at best. (I could be completely wrong, this is just my expectation). 9-10p? If I get in at 5.5p then its nearly doubled and that will get my attention. Now, 5.5p may never come but that's ok, there are plenty of other fish in the sea to try and catch. But I don't see a compelling risk reward today on where the SP is, and where I think it might go in the next few weeks/months.
Good angling Wyn.
Generally.... in = glass half full ........ out = glass half empty
Or as classic as you can get..... buy low, sell high
Not knocking your points and views but ultimately you want to get in cheaper. I’m not even knocking your tactics. Good luck to you.
Personally if I had spare funds I’d have been in a while ago with more.
If ever I want something such as a car, artwork, etc etc..... I will always downplay and never act keen.... casual interest but can give the impression of being prepared to walk away if I don’t get it cheap enough
I am quite happy with things at the moment but bought in at around 4p. A friend of mine pointed out that EVE were at £1.30
in 2017. I had absolutely no idea that this was the case. I read things on here about Woodford. Can somebody enlighten
me in precis form exactly how this demise took shape to the point where the share were trading at less than 1p. Has there been any form of rating or is it a straight drop from £1.30. Apologies for being naïve but if some could take the trouble to
advise me on this it would be much appreciated.
A good update !!
Out at the moment User, but I would probably wait now for the results (unless it went sub 6p to buy which with all the furore seems unlikely.)
Results, good though they have been, have a history of being slightly underwhelming and that I think has been the story of the last half of last year. Great progress but somehow never quite translated over the last 6 months , which bearing in mind the 2 profit updates was disappointing. Not sure anything earth shattering will come from this set either given its only 2 months since the last one.
My expectation is CC will again highlight the uncertainty of forward sales. She I think has a track record now of being cautious (which is admirable in this climate), but is not great for forward sentiment. I think she believes in the figures doing the talking (and fwiw, I agree)
On the other hand (and this is where I see the potential growth driver), the French market might get a bit more air time and although I won't expect that in the current figures, maybe a greater emphasis on that will help the SP in the presentation?
All in all, I think the explosive SP growth has taken place from 1p (or below) to 7p now, which in 12 months is just about as good as it gets! The next leg up I think is longer term, maybe double or treble from here over the next 24 months, which as I say is still a very good return indeed, but it is hard to look to far forward right now.
As we come out of the pandemic, there will be a lot of demands now on that spare cash from individuals, and "boring" old Mattresses might not be quite the flavour they were?
Who knows? She might pull a rabbit out of the hat, which is why this can be such a fun game.
I think the SP based on a steady as she goes set of results underpins the SP between 5.5p-7p which means the downside from here (assuming no bad news) is reasonably limited. As always, just my 2cents GL
Hmmmm. I'm sure you have Sir. To answer your specific Q around generating 4-5m of profit. It clearly depends how the additional sales are driven. But given that gross profit margin (after paying for distribution) is currently 42% then if driven organically without marketing we'd need c.£10m of additional sales. You're right that if current marketing rates (% of rev) remain consistent with now then it would need to be more like £25m. But I think you're missing the point - profit margins are increasing due to a number of factors but the main ones being a reduction in marketing spend and secondly the diversification away from mattresses into very high margin products. Good luck to you with your investments.
Out of interest Wyn, are you currently in or out?
If currently out, at what price would tempt you back in?
I've already been in and out twice Genius (what a misnomer!) since jan for your info
More 'insight' from the man who sold after the Jan announcement and was hoping to get back in pre results.
The price is not tanking,if people had alittle patience and wait until 18th March i am sure the market will make it's on mind up,for me EVE is going one way and that is in a very positive direction.
Debt dramatically reduced
Look at who is behind the turnaround and i know we are in safe hands.
Maybe, Tiger its because of the questions I posed yesterday that ellicited zero response :
"Am I missing something but how much is Eve earning out of this tie up?
Do we know what projected annual sales are?
Are we saying this tie up is worth as much or even more as what Eve does (ie make and sell mattresses)
The way the SP is reacting is that this is transformational. is it?"
Nothing much has changed since the Jan update, except for a tie up that we have no idea what impact it might make to the bottom line. This has drawn in crazy rampers here that are not applying any metrics to the business and making assumptions that it will make £4-5m this year. How many extra mattress will it take to make this "profit". If breakeven is £24m turnover then I would say turn over would have to double to generate that sort of profit.
Is that realistic in this economic climate? Has EVE got a USP? I laud the diversification but that is a necessity given the competitiveness of the mattress market.
This is a tough environment in uncertain economic conditions with higher taxes to come and higher interest rates with higher unemployment kicking in. Its not ideal for any retail company
Don't get me wrong, I think EVE has good prospects but it is on the cusp. My "feeling is that it is in fact, sales wise, going a bit too slow for CC's liking and I think EVE will start to turn on the taps of greater advertising spending which will mean a higher breakeven figure.
Maybe the company will be transformed by licensing cannabis oil but right now there is not much info other than hype to suggest it will.
LTBH won't be put off by anything I have said because we already know all of it and an 8-10p SP in the next 6-12 months from where it was at the start of this year is a very healthy return and over 24 months is simply fantastic!
Guys why is the Share price tanking ....?
we need a RNS ... they need to pull their finger out and work with the market .... give information ...