Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Appalling piece of so-called 'journalism'. It's a very shallow 'deep dive', she gets the share price wrong, the H2 '19 revenue wrong and even the name of our new CBD 'partner' wrong. It's bad enough when amateur BB posters talk Horlicks (as many do) but this is another level.
Would be positive if this is a new higher low but historically the SP has shown an amazing ability to continue right down to 4p before rebounding.
No - I like the way Eve are very selective and apart from the Channel 4 deal don't do blanket advertising (see what I did, there?) . I don't know about FB costs, but Google can be ******* expensive for not much if you get it wrong.
Just came across this new competitor (via an ad on FB). Canadian company with a UK subsidiary (directors are Canadian). Incorporated October 2020 and we will be able to follow them via Companies House.
Also had ads on my feed from Otty, Simba and Emma but not Eve.
I would agree that on the figures we have now, 50M revenue could support a 20p+ share price at a PE in the low teens. Could even be higher with canny marketing (eg press releases about CBD rather than TV advertising!) or a more aggressive PE.
Some days a 'simple doubling of revenues' looks quite possible, others it looks a long way off. I'd be more than happy 4-bagging from here in 4 years time.
To provide a little counterbalance to all the optimism, don't forget that the figures in March will still show a 2M EBITDA loss on 25M revenue. Extrapolating from the interims, the statutory loss could be 3M. At 25% margin after customer acquisition (marketing) costs, and assuming no increase in HO costs, that would imply 12M (50%) additional revenue to get to breakeven against the (IIRC) 18% YOY increase in the second half of a fantastic year.
There are, of course, a number of assumptions in the above which could turn out better or worse. I think we will make it, but on my central model it may take rather longer than some people here seem to expect.
Unless there's news or an 'interesting' TR1 in the next few days, looks to me like it's the CBD news wot did it. Ridiculous IMV, as we're not setting up a hothouse in the warehouse, we're just buying some CBD oil and using it in products that will be available on the website and maybe in Boots next Christmas. The main benefit might just be making the mattresses 'cool' to fans of CBD and the substance it is derived from. I see this a just another solid step in development of the brand, not a step change warranting a major rerate.
HH,
Thanks for the reply. From a quick Google, looks like in 2018, Boots normal terms were 75 days from the end of the month when the invoice was raised. Won't be a lot of money, but might just take us cash positive for the year.
I don't know about Boots specifically, but some retailers demand very extended payment terms - like 90 or even 120 days from the end of the month when the stock was delivered. Given how late the eve stock appeared in Boots, it could be that these numbers do not include the cash (or possibly even the revenue and profit) from the Boots 'partnership'.
Does anybody have more specific knowledge of this?
My lowest was 1.09p, but somehow I'm not feeling lucky this morning....
The numbers are better than forecast just 6 weeks ago - what were people expecting?
Supply chain issues are a concern if they continue, but will affect high-spending competitors more than us.
Metom,
Shareholders can stop the deal if enough don't accept it.
Quite possibly, but we may have to wait for further trading news - hopefully quarter news next month but if not then January. I'm looking for a multi-bagger in a couple of years time, so not too concerned in the short term.
If you read the RNS, it launches in October.
... and Emma are in John Lewis.
Don't assume the price is going up in the morning. I'm confident we'll be a lot higher in 12 months but there's quite a bit of room for disappointment tomorrow for people who haven't done their research and think the company is further on than we may find it is.
With 12m revenue in the first half and a traditionally strong second half, 25m revenue for the year would be disappointing.
It's not strictly true that they can't do placings. They just didn't get blanket permission from the AGM (as most companies normally would) so would need specific approval at an EGM if they wanted to do a placing.
I read this as being HRNET trying to strengthen their position by restricting current management.