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Yes, and let's hope Magazinos / Garimon Ltd comes with good news......;)
From a very quick look at BSP property's balance sheet, the company is trading at around half net tangible asset value.
There is 267 million krone of total assets; 255 million of that is property: ie the hotel.
Against that there is around 186 million krone of debt and other liabilities.
total tangible equity is 82 million krone which is £7m. CRV's share will be worth £1.78 million.
So this is a very good deal, IF the value of the hotel on the balance sheet is robust.
Another way of looking at it.
Prior to the deal: CRV owns 29.99% of Yrro LTd.
After the deal, CRV owns 25.49% of Yrro's various assets + 25.49% of a large hotel in Bulgaria.
Ultimately, this is a good deal if 25.49% of the hotel is worth more than 4.5% of Yrro ltd.
BSP will change its name to Bio Vitos AS if the deal is ........
If the deal does go ahead, CRV would be able to liquidate its investment, if so desired.
It's worth noting that cannabis stocks have recently been uprated, given moves in various jurisdictions to facilitate the use of cannabis for medical ends.
So, on the face of it, this looks like a very good deal to me.
Black Sea Property pays 130m Norwegian Krone - around £11,180,000 - for the assets of YRRO ltd.
CRV owns 29.99% of YRRO. So CRV's stake is worth roughly £3,335,000. CRV payed $1.6m for its stake in YRRO ltd, or about £1.22m. So a considerable uplift on what CRV paid.
However, the payment is in BSP shares. BSP is a Norwegian Company which owns a large hotel in Bulgaria.
The RNS makes clear that if the purchase of YRRO goes ahead, BSP will divest the hotel into another corporate entity. So if the hotel is successfully divested, BSP will have cash from the divestment, plus YRRO's assets.
YRRO shareholders will own 85% of BSP. CRV will own 29.99% x 85%, which is just over 25.49% of BSP.
I assume once the hotel is divested, BSP will change its name.
A pretty surprising development!
CRV owns 29.90% of YRRO Ltd, Not 20.90;)
Nor Can Oil is owned by YRRO Ltd, the main owner of YRRO Ltd is CRV of 20.9%
www.norcanoil.com
From the website:
Our partners produce cannabis oil products containing different percentages of CBD, medical cannabis, and other cannabinoids in order to meet the unique needs of each customer. Our partners manage the entire production process, from seed to finished product, these products we then implement into Norwegian Omega 3
This new Partner could be a catalyst for change .
Best of
Thanks .iosbyios .
Best of
It is BSP on Oslo Euronext Growth, not UK.....;)
Upwards may be with us soon.
With so few shares available.
Best of
Should be good for my BSP shares .
YRRO could be a excellent long term proposal.
Best of
It's a competitor to Magazinos, surely?
I don't think they own any, do they?
How much of READILY do CRV own?
Hello, iosbyios, thanks for the link to Vitealab AS, a competitor to Rosedog.
Rosedog markets omega 3 and one or two other skincare products on behalf of another company. It's not a manufacturer. It doesn't benefit from the large mark up you talk about.
I'm guessing it never takes possession of the omega 3 and other products. Logistics is handled by the manufacturer. So the viability of the business depends on what percentage they are paid on sales through their website. Your own history and a quick scan suggests there is considerable competition to this model.
Certainly, if I do a google search in Spain, there are a legion of re-sellers of omega 3, vitamins etc. And, of course, they overlap in the products they are trying to sell. As far as I'm aware, Rosedog doesn't have an exclusivity agreement with the manufacturer. Most of these resellers won't sustain a high enough margin to stay in business. Barriers to entry are very low., as Rosedog itself demonstrates.
RE magazinos: We'll have to hope advertisers buy in to what they're doing. Thank you very much for the interesting background on the field of on-line multi- magazine portals. After reading your posts, I'm feeling less pessimistic regarding magazinos. I can see there is a small, but significant chance of viability.
I'd be interested to hear your thoughts about the other companies part-owned by Craven Capital.
PS I'm used to operating on a daily basis in foreign languages - Spanish, French, Basque. It's great to see you really flying in English.
Hi John
Thank you for replying and nice that we can have a serious conversation
I am from the Omega 3 business in Norway and I can only clarify the Omega3 business in general steps. I was 13 years old the first time I worked in our family fishing business in the North of Norway, has even worked as a fisherman before I join the School of economics where I later worked as a teacher. Please look into the Norwegian Omega3 business. Vitealab AS, net earnings of £ 20.000.000, selling Omega3 only in Norway and Sweden and It's a young company, only 12 year and they are Not from the old Omega 3 business in Norway.
Net profits in most of the Norwegian Omega 3 companies are always over 20%, where cost of marketing is the main cost, not the production cost.
Regarding Magazinos, I can only tell what is public
Magazinos has 11.087 magazines to read for Free and is Nr 1 in the world by content
Nr 2 is Pressreader with 5.000 titles and is a very expensive digital service, owned by Canadian Bull Press, then comes Indian Magzter and then comes Swedish Readly with +4.000 magazine titles
Readly lost £5.000.000 the last 3 months and valuates today to £ 200 million. Readly is listed on Nasdaq First North Stockholm and given info is public, check announcements they just did
Regarding Craven Industrial, I don’t know anything about Craven Industrial and I am Not a shareholder
Thanks iosbyios for another series of interesting posts, coming from a different point of view to mine.
In your reply about margins, you are talking about gross margins. I'm talking about profit margin.
Rosedog is retailing omega oils produced by another company. There are legions of resellers of omega oils. This is an intensely competitive market.
I'm delighted that the family behind the production of the omega oils has experience in the business! That's a sine qua non! I would be really interested if you could clarify the relationship between Rosedog and the production company, whose products it's trying to sell.
Do you know what the commercial relationship is between them? What is Rosedog's mark up, for example?
You talk of a family connection. Could you be more specific?
Regarding magazinos: the only advertiser currently is Rosedog. I understand the comparison with facebook, Google, but it just seems wildly far-fetched at the moment. You could make the same comparison about any online start up with no income, except through advertising.
Do you have any concrete indications of how the Magazinos business is going? How many "subscribers" are there, currently?
As for Peter Gyllenhammer, he took a significant stake in CRV before the split into Craven Capital and Craven industrial holdings, but has rapidly sold down his holding in Craven Capital. That is not a vote of confidence, coming from such an experienced and successful investor. He's nearly always right in my experience. Have to hope and prey that he's got it wrong this time.
Could I ask if you hold shares in Craven Industrial too? If you do, what is your thinking ?
Regarding Omega 3
You write:
Rosedog sells omega oils and skin care products. This is a very very competitive field with wafer-thin or non-existent margins.
To clarify the Omega 3 business in Norway:
To produce a box of Omega 3 in Norway, same as Omega 3 North Norway that Rosedog produces, cost $ 2.5 to produce and sells for between $ 15 to $ 25 direct to buyer.
If you produce it in Poland you can produce it for around $ 1,5
To retails in Europe, you sell it for $ 6 to $ 8, sometimes higher!
In my world, that is Not a non-existent margin!
In my example above, it is a box of 90 capsules with 1.000 mg Salmon Omega 3 oil
Regarding Omega 3, you are very wrong!
The Swed / Norwegian team know the Omega 3 business for decades and their families are big into Omega 3 in Europe, Russia, Asia, and China
Just read the info on the home page for OSL, Bio Vitos, Nor Can Oil,
www.oceanskinlab.com
www.norcanoil.com
www.biovitos.com
Google, Facebook, Instagram, Snapchat etc. are all Free services, same as Magazinos.
Magazinos is Nr 1 in the world by content, soon Nr 1 in the world by users, hope you can see where Magazinos is going
Regarding Gyllenhammer, be sure, he works not for the shareholders of CRV, only his own pocket......;)