Member Info for Aimtrader1

Wyn - apologies but I'm not engaging with you. Not often that a poster frustrates me so much.

I think v unlikely DG. I'm sure Wyn himself would even admit that - he's too active to be anywhere near profitable.

DG - you give him too much credit. I'd place a rather large wager that his % losses are worse than your own.

Why do you take enjoyment from it Wyn?
He's clearly in deeper than he'd like here and wants to remain positive. What is wrong with that??

Wyn seems to enjoy turning up when things go bad and telling people that things have gone bad. I'm sure he knows that some people will be invested at higher levels than they can afford here.

Only the losses post acquisition can be used.

Plan A is obviously to get in new investment and deliver on the ambition. Plan B will likely be to scale the operation back. Try to sublet the office. Scale the team right back. Don't invest in brand building just marketing that pays back in real time etc etc. With the margins they make on each mattress sale you can run a profitable business here.

Wyn - before lecturing DGU I think you should look at your own holdings. You're currently invested in a Tanzanian helium 'business' with almost no cash. They've carried out a load of seismic work over the last 12 months and found absolutely nothing hence why they're returning to the first drill spot to try and surface a few drops to get people excited before raising cash and moving onto a completely new area outside of Rukwa. They have absolutely nothing. But a market cap of £66m !!! You'll try and justify this by talking about the charts no doubt as not interested in the fundamentals are you?? If I had £66m to buy that or £4-5m to buy Eve - strip out the costs - in house production. I know which one I'd choose ;)

i wouldn't accept 3p. Would prefer the business borrows the cash, reduces costs and rides out this period if that's the offer. Let's see.

You try 'snapping them up' in any kind of volume. The SP would be 5p+ before you aquire 10%. You see how it moved 100% on the DFS news on tiny volume.

This is not being sold for 2p guys. It will likely be in the 4-6p range or no deal. The business still has cash (i'd also guess at c.3m), no debt and has a large overdraft facility in the event things do get tight. We're better to continue standalone rather than except stupid offers. This is about seeing if there is interest in the business. It's not a fire sale.

The Dreams partnership didn't work out correct. But Argos, Dunelm, Wayfair, Next, DFS, Habbit/Sainsburys all seem to be long standing so not all doom and gloom is it.

Seems a very good fit. They have in house manufacturing capability also which could really help.

Im not saying there isnt correlation just that the post didn't demonstrate it.

I stopped reading Wyns posts after he listed annual revenue / profit figures and then somehow suggested that it demonstrated that as marketing contribution dropped so too did revenue.

It's going to be an interesting few weeks/months. Expect to see a rebound in the SP for the remainder of the week as people take positions and hold for the offers to (hopefully) come in.

Why does everyone keep mentioning £5m? The sale price will likely be significantly higher than this - north of £10m.

Not sure it's right to play the -15% through FY. They've stated before that comps up until May are tough but then get easier and that's validated by today's announcement as the last 3 weeks are in growth. Also not right to play historical margins through to 2022 as we know they've made changes. On track to report another loss for sure but not as high as you're stating there.

Agree. Think we'll see the SP rebound sharply from here over the next few sessions as people start to weigh up the flipping opportunity. Offers will come (I'm absolutely certain) and so it's all about the price.

I think today's announcement is actually great news and will (hopefully) safeguard the future of the business. The management team have made lots of mistakes and I've been ultra critical. But I think this is a good move. Eve have a great core product and a very strong brand. It's an ideal bolt on for a major who can strip out the costs and possibly inhouse some of the production. In the right hands at 25-30m of annual revenue you could be looking at 5-6m EDITDA. There will no doubt be interest here and it's really just a matter of price from our POV. Hard to value it but I'd expect that we'll be looking at multiples of the current SP. Pure speculation but think anywhere in the 4-6p range in very possible. Let's see.