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Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company like Distil Plc with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. In Distil’s case, its revenues over the next few years are expected to grow by 38%, indicating a fantastic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value. Not forgetting company's agenda to sell it's brands to bigger players.
USA is very difficult market but once it is done, sky is the limit. Finding decent dealer/representative is the key to success, if you get it wrong...losses can be devastating. CEO Don Goulding is correct to be cautious for not rushing into employing dodgy dealer. Patience is the key so I am going to hold on as long as it takes regardless. I can't think of any other profit making with positive cashflow small caps/aim listed company that can match Distil Plc.
SP can go up and down (nothing stays the same). According to the CEO, he is in it to develop a brand and sell it to bigger players to take it to higher level. Nothing is impossible. Where there is a will, there is a way. Better late than never is my motto so I am a loyal long term customer who intends to stay with Distil as long as it takes. Patience is a virtue.
I do not believe this company will survive, cut your loss.
7Dig's sp went up due to disposal of it's loss making product, but that product was also their bread winner (i.e. main revenue generator). How 7Dig will plug that hole is million dollars question? Next financial report will show less revenue and more losses and the balance sheet will show negative net current asset with falling cash at bank. There will be cash crisis in the near future. DYOR.
100m shares are waiting in the que to be sold today.
It should settle down at 0.20p (revised).
what goes up....
We should see loads of profit takers in next few days and quite rightly so. Cash burn rate at 7Dig is very high, sooner or later there will be cashflow issue.
Cash at bank as at 30 June 2018 was £100k (not £220k).
Trading Update:
Following the recent reductions in revenue, particularly in India, Mobile Streams has undertaken a comprehensive cost-cutting exercise, resulting in a significant reduction in headcount, rationalisation of the Company's main operating centre in Argentina as well as reducing operating expenditure in the UK, US and India. As part of the cost-cutting exercise, the Company's CEO and both Non-Executive Directors have volunteered a partial salary deferral of 50% of their respective remuneration.
The rationalisation and cost-cutting exercise has resulted in sizable one-off redundancy costs and severance payments of approximately £290k, primarily due to the long service of many employees and the severance terms in Argentina. Following payment of all the Company's severance obligations, the cash balance currently stands at £219k (as at 10 April 2019).
Monthly operating expenses in Argentina from May 2019 are expected to be reduced by 72% on an ongoing basis in comparison to December 2018. Overall, the Board anticipates a reduction in global operating expenses of approximately 62%.
Commenting, Simon Buckingham CEO said: "Given the falling revenue, it was necessary to take decisive cost reduction actions. This has allowed the Company to preserve and protect its remaining cash balances. The Company is looking at all potential business development opportunities and other asset optimisation strategies."
imo, MOS will have cashflow problems in the near future hence more dilution to follow. Wait for next RNS.