The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Can the AGM be watched online? Anyone got a link?
Does that mean they are only permitted to issue one-third of the company's share capital (current float (i.e. 274,742,418 shares)) which means at current market cap (4.5m) and share price (1.6p), if raise at current share price then the maximum they can raise is 1.5mil? But usually rights issues are issued at a discounted price so it's likely they may only be able to raise about 1mil? That's not much is it?
MMs taking 1.1m shares at 1.815p- seems to be a willing buyer at these prices.
Past two days have been strong and consistent selling... it seems the cost of living crisis is spooking retail investors. It seems quite rational that people are less likely to buy a mattress during these times. Hopefully DFS deal generates high enough sales to offset the general downward trend of spending especially high priced items like mattresses and furniture.
What makes u think that? CC mentioned they received none so far in the recent update not long ago. What changed since then?
It's great to learn there is an influencer promoting it.
Added again today. Tried to add more before close but couldn't buy anymore. Seems selling is drying up unlike previously. I can now sell 400k shares without a problem... Seems like any sort of serious buying will cause significant changes in SP. GLA, IMO, DYOR.
5mil Market Cap, 4.5mil cash in bank... even with all the headwinds of inflation & consumer spending in UK etc. I think with this is IMO at least worth 15-20mil business at current situations; so i think the market undervalued this company quite significantly and priced in failure for this company. I simply don't believe it. I think this is a great business with top leadership and talent (one of the Best Places to Work 2022 by Campaign Magazine UK). I think it will eventually come good and possible consideration for takeover rather than bankruptcy. Time will tell... I think the recent deal with DFS also helped a lot for my decision to add. GLA, IMO, DYOR.
Hope to see director buys. Ex-Chairmans Wife Ms. Pindar bought more of PurpleBricks on recent lows. I am hoping senior management put money where their mouth is. UK&I Breakeven this year reaffirmed by Chairman and CEO. They seem committed and long. GLA
Spreads currently at 8% + transaction fee 1-2% = 10% cost- as soon as u buy u lose 10%... The spreads are shocking. Unless u expect this to rise 50-100% otherwise the immediate loses are horrendous. I am currently holding for tomorrow. Not expecting much... sales I think q1 should be okay. Going forward could be challenging due to inflation and market conditions although recent news on company specific performance relating to the new partnership with DFS cud offset the status quo prior to partnership and boost sales growth. IMO, DYOR
Historically speaking, SP rise before results day and then fall after. In this case, we are not seeing much of a rise although results 2moz. Are u buy, hold or sell? What's ur opinion?
Thanks for ur opinions Wyn. That is a great question... and it's quite hard to find the balance.... especially when this particular sector is experiencing fierce competitive, a mattress price war in addition to rising costs, deteriorating margins and consumer tightening.
However, CC is wise and from my limited knowledge of her, she seems very fixated on the ROI idea of customer acquisition cost and generating much more than every £1 spent on marketing. I think she actually gets it unlike the prior CEOs and so many other who splash the cash on marketing without considerations on returns. This I believe CC will eventually do a good job if she gets the money to spend over long-run. IMO, DYOR.
Positive results BUT key headwind I think is inflation. Margins are very slim in this sector... so continued rise in costs such as logistics, fuel, raw materials, salary etc.. is not going to help h2. Debt down significantly but Avg month-end net debt still at £191m... Would of been better if they just raised more previously to reduce debt to zero. Nevertheless, good progress. IMO DYOR.
https://www.marketingweek.com/eve-ceo-growth-budget/
Someone kindly shared this article following an interview with CC regarding investing in marketing and branding which I'll thought i'll repost. It is quite clear to me that CC will want more money to do more with the brand in the long-term. Some comments highlighted below:
“A tight budget will make you more efficient and therefore more able to drive effectiveness tightly, but if you add more money you could do more."
"businesses should not ignore the opportunity cost of failing to invest in their brand, warns Eve Sleep CEO Cheryl Calverley."
Besides, during the investors meeting in the recent TU, CFO, Tim and CC both mentioned they will put more effort to join investor roadshows to speak with new investors which to me clearly implies ideas for raising more capital from professional investors & IIs. For any new and existing investors, this is definitely a consideration...
A big BUT... I do believe this company has been oversold at 5mil market cap, with 4 mil cash in bank and over 60+ million raised and already invested in the company and a stellar CEO and team, IMO the company will eventually turn a profit sooner or later.. hopefully sooner. IMO, DYOR.
CC's statement sounds like long-term commitment to Eve Sleep which is good reassurance. Does anyone have the video link to the interview? Would be interesting to watch.
On the one hand 5mil market cap looks like a bargain for this company, but... I am concerned for the following reasons:
- Fund raise: We may be needing more money via a significant discounted rights issue to raise sufficient cash to fund CC's big ambitions for this company. The dilution concerns is a problem as cash in bank continues to be erode.
-Inflation: Cost inflation in supply-chain, from logistics/shipping, raw materials, costs, wage increase etc.
-Interest rates raise
-War
The last 3 reasons could hit consumer spending and confidence. Which is why I am concerned this stock is becoming a value trap. A takeover is possible... but it's a Pie In The Sky idea only until it happens.
IMO, DYOR.
Eve ranked top of the mattress page. All five of Eve mattresses shown at the very top of the very first page... what a compliment and it shows DFS is very keen on the Eve Sleep brand. Hope this will drive sales for DFS and Eve Sleep. Great start to the year.
Yes 2022 seems a lot of headwind and uncertainty with the war and inflation expected to hit consumers. But with 4 mil in bank, it values the brand equity at modest levels...
Note the company which has already raised and invested around £50-60 million to where it is today, with strong brand recognition, systems and management. With around 27 million in sales per year and a solid strategy going forward to turn around this company. I believe the company is worth a lot more than it's current value. Just hoping some bigger players finds this gem.
I do think it's about time for consolidation in this industry... this fierce competition and all year round discounting is not really sustainable. IMO, DYOR.
Nice one! THanks
@Wyn-What's your opinion and technical analysis on the current SP movement. Alway like reading your assessment :)
I agree Wyn. It would make a lot of sense of DFS to acquire EVE IMO. If DFS wants to push in to the new bed category then it will need a strong anchor brand like Eve Sleep to attract customers rather than selling me2 products. I think DFS are probably testing waters to see how well Eve mattresses sell on their platform. IMO, DYOR.