Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
Don't use it myself either - just thought it might be of interest to some.
The lack of news regarding the placing is really killing things here. Can't say I'm a fan of the way it's been handled. For anyone interested, some technical analysis on Koovs can be found below: http://tuckermantimes.com/is-koovs-plc-koov-l-headed-towards-a-reversal-stc-in-focus/240608/
Useful info Putney. I'll be monitoring this closely in the coming days/weeks and depending on the placing results will look to take a positions.
Putney - thanks for clarifying and I agree regarding traditional fundamental metrics being largely irrelevant for small cap stocks in high growth sectors. Regarding the £14m of other operating expenses - do you have any idea what this could be in relation to? It's obviously a very significant sum so would be interesting to know where it's going, ie website development, distribution networks, marketing etc.
Smiley - I do like the business, it's clear as day it has potential. I'm not questioning things in an attempt to de-ramp here as I suspect that if I do join the party it will be a long term play. My concerns are based on the high other operating expenses and the fact that cost of sales is increasing faster than revenue. Would genuinely be interested to know the reason behind this as the business is new to me.
Looking in from the outside here but quite like the Koovs story... The financials are a bit of a concern though, does anyone know what the other operating expenses of about £14.75m consist of?
Mudis - my £1.9m figure is based on the £1.65m figure from Progressive Research. Since that figure was announced we've had 2 separate trading updates stating that we will outperform. I think £1.8m is quite likely figure. Aim999 - fair point, the easter earnings shift will have reduced revenue slightly. I think anything north of £1.8m is a very good result.
Not usually a fan of this type of 'earnings smoothing' but in this case it could be very good news for us. The typical route would be for a company to recognise earnings aggressively to boost the current share price in the short term. The fact that we're actually delaying the recognition of these earnings suggests that this years results have already exceeded expectations and that they can, in affect, afford to move the revenue to the current business year. Looking forward to hearing about US distribution too - exciting few weeks ahead!
No issue with the idea of banking gains if investors feel the need to do so, for me though, this one still has a long way to go. In the next few months I expect us to announce record revenues (since our conversion from a distributor), announce a profit (albeit a small one), announce the fact we're selling in the USA, and for brand recognition to grow significantly in line with our deal with Wetherspoons and completing a clean sweep of the Big 4 supermarkets. I have an exit price in mind, but we're not close to it yet. I would say though that anyone saying we have a weak balance sheet is fundamentally wrong. Our cash position for a company of our size that is approaching profitability is extremely healthy.
No issue with the idea of banking gains if investors feel the need to do so, for me though, this one still has a long way to go. In the next few months I expect us to announce record revenues (since our conversion from a distributor), announce a profit (albeit a small one), announce the fact we're selling in the USA, and for brand recognition to grow significantly in line with our deal with Wetherspoons and completing a clean sweep of the Big 4 supermarkets. I have an exit price in mind, but we're not close to it yet. I would say though that anyone saying we have a weak balance sheet is fundamentally wrong. Our cash position for a company of our size that is approaching profitability is extremely healthy.
Looks like my premonition about Asda coming on board was accurate! Great update from the company - results ahead of our current enhanced expectations and another supermarket on board. Expecting a lot of action in the SP today.
Noticed that Tesco have Blackwoods gin listed as 'currently not available' online. Spoke to a contact working in Tesco operations and they confirmed that the lack of availability is due to issues of demand, and they should have additional stock in the next few days. Looks like Redleg isn't the only thing selling well!
I have to disagree. If you're valuing this company purely on fundamentals then you're missing the real value imo, which lies in the Redleg brand itself. We're in most major supermarkets in the UK, available throughout Europe and close to distributing in the US - we've done all this in a short time period with a relatively limited budget. It's extremely easy for a large name (Diageo for example) to purchase a brand like Redleg and upscale production and distribution immediately. Imo - the next trading update will reinforce strong performance and inform the public of the contract with Wetherspoons and the share price will respond very positively.
Trading update sometime in the next 4 weeks I expect. Had a look at the Sipsmith takeover today to try and put a fair price on Distil. Beam Suntory purchased Sipsmith, a british gin manufacturer with revenues of less than £6.5m, for £50m. This gives the company a P/S ratio of 7.7. Applying that same ratio to Distil, with a revenue figure at year end of £2m would give us an overall market cap of £15.4m, a 50% gain on todays price. Judging by the last positive trading update, I don't think a revenue figure of £2m is beyond our reach at all.