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Glad to see this rally back to 3p... Hope the momentum continues this week. GLA!
Back in on Scancell. I have been monitoring scancell for a while now having previously sold. the drop looks over done I guess mainly influence by wider biotech sell in the UK and also possible influence from SNG.
13p now looks like a very attractive entry and I'll be looking to add more depending on how the share price unfolds over the coming weeks and months. GLA, IMO.
Are we bottoming? Seems we have an uptick of buys the past 2 days... recovering to 2p from 1.7p. Hopefully the recovery and trend continues to grow.
Yes- D-Gee - the entire market is horrible. FTSE down 2%. The Macro outlook is not looking rosey atm. With inflation rising (like energy prices, fuel, logistics etc) and interest rates expected to hike. Consumer spending gonna be a bit tighter. Markets are going to continue to be volatile at current times.
-4.5mil in bank excl. inventory
- 5 mil market cap.
= Enterprise value of 500k
The company over the years has raised in excess of approx. £60+ million to invest to where the brand is today. With solid management team and strategy in place, IMO I believe the company is significantly undervalued... Hope to see some new investors who also think it's a bargain at current market cap and invest in Eve over the long-term. IMO DYOR.
When does the selling stop. I hope it's not someone in the know about a significantly discounted rights issue... getting a bit ridiculous.
Agree Wyn... without any fault of the management, Eve sleep is operating in a extremely competitive market. There is only so much you can do even with CC being a super women. You're right about cut throat... I am hoping for a takeover and consolidation in this sector is ripe. I think a good fit would be Nectar and Eve Sleep, both the underdog in the UK market with 1 yr trial, and could do with some synergies and scale cost benefits. IMO, DYOR.
I think if Eve wants to portray a premium brand, I think it should also stock SILK beddings… IMO it’s a winner. Would be great if someone could help email this odes on to Eve team to consider.
Thanks for sharing as usual D-Geeman. Insightful numbers...January looking good. Hopefully the momentum continues.
From my previous experience, most CEO's do not pre-announce a rights issue until confirmed the terms of the funding with IIs. This is so they have more power at the negotiation table. If they reveal their cards and show they desperately need cash, then it is not likely they are not going to get a good deal (need to show they are willing to walk away from a bad deal) so they will obviously say they have enough cash in 2022 and do not need it but of course they would like more cash in the bank to spend if possible to fuel and accelerate CCs ambitions for Eve Sleep. In her previous article, she mentioned... cost cutting only helps with efficiencies but essentially you still need to invest cash for growth. And it's clear from CC that Eve needs to surpass £30m to start to show sustained profit and you need cash to do that.
IF a rights issue does happen... then the terms of the fund raise and typical discount (occasionally premium although unusual... ) is up to the board to negotiate and decide; and it is usually out of the control of retail investors like us... until much later when all shareholders are asked to vote to go ahead or not with the terms of the rights issue. IMO, DYOR...
As CC mentioned in the recent trade update, they are now going to make more efforts to look for institutional investors to diversify the investor base with currently mostly retail investors. So I think the market is currently pricing in a rights issue/ capital raise which tends to be at a discount. IMO, DYOR.
The broker and TU is expecting further group losses this year with continued investment in marketing and growth. And with the current cash reserves getting eroded, the cash in bank is not sufficient for driving sustained growth compared with competitors. Seems Cc hinted target of £30m+ in sales to see profit figure.
DGP123- i think they are outsourcing part of their IT services to Bangalore cos it is cheaper rather than expanding to India. If they were expanding to India, they would have likely to mention in previous TU considering it is a massive strategic decision.
Agree with u D-Geeman. No matter how tough and competitive a traditional industry like Mattresses and other sleep products. There are good businesses and bad businesses. And especially Eve is an online play and the trend is still heading that way, so Eve still has some opportunities although a bit challenging.
DGU123- Yes I also got a bit carried away with CC's charisma and forecast also before TU. I think need to lower my expectations going forward so I am prepared for the possible outcomes of not delivering according to her ambitions. But I still have confidence in her ability over the longer-term. IMO,DYOR.
Haha a bit of realism, saying it as it is from Wyn. Nice one. Always good to have your opposing and valuable opinions... quite easy to get sucked in the herd mentality when everyone on the forum says buy buy buy. Seems in the short-term, the only way for sp to rise rapidly if we have serious interest for buying the company in part or in full. But that is pie in the sky stuff. Fingers crossed...
I think we will get quite a bit of resistance below 2p. Two years + ago Eve Sleep was losing 10m+ every year. Turnaround is happening and we are heading towards breakeven this year for UK + I and aiming for subsequent profitability in future years. Things were different when it was 1p... they now have clear strategy, strong management team, new products in the pipeline, and over 60m of equity invested in developing the brand equity. All that for near cash in bank value. I think investors will realise the valuation is not reflecting the potential and true value of Eve Sleep.
Yes, I stick to it. CC and team are the best you can get for this company IMO. I think we investors will need to be a bit patient. CC will need more time to execute her strategy for sustainable profitability. She mentioned, she could turn a profit this year but it wouldn't be sustainable. Since she is trying to build a company with strong foundation rather than a house built on sand. The current market headwinds (competition), Covid, and inflation are not helping but as the company progresses, we will see it reflect in the sp over longer-term. But it would be great if directors and other investors commit further capital to show confidence.
Shocking... below 2p = 5mil valuation... with current 4.5mil cash in bank with 26mil sales, top management team and top brand equity.
Now would be a great time for director buys at these very low levels... and prove the market wrong and instill some CONFIDENCE! I hope CC, Tim, Chairman and other mid-level directors can further their skin in the game and at the same time make a lot of money together when they profit.
Expected a fall after reading the results but this is skydiving... I wonder what they are gonna do about it with these investor roadshows. Hopefully generate some long-term interest and investors.
Don't give up. Definitely not in favour of NEW ceo with account background. She is NEW. besides, that's what a CFO is for. I think CC is the best person for the job, essentially this is a marketing business since it's pretty difficult to compare apples with apples, since all the mattresses are probably very similar made from the same manufacturer. The only differentiator then is a strong brand and unique story which requires strong marketing communication with consumers. I believe Eve has the right management in place to execute Eve in to a successful brand.