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Hi Guys,
I have been a long time investor into Eve. I have been a fan of the brand and the way it’s positioned itself.
It’s a shame that with the world events it has disrupted this rebuild strategy and put pressure on the finances along the journey.
My background is in launching, scaling and turning brands in the jewellery industry into profitability for the last 20 years.
I think there are series of steps Eve can take to make this into a sustainable business with profitability. The fact they haven’t done it yet means they won’t be able to do it by themselves.
Between myself and friends we hold a sizeable chunk of Eve shares and I have written to them to see if they would be interested in my help in turning this around.
I just feel, it’s a great brand, great vision, good products, great team culture, only thing missing is the right strategy to build profitability, which I am very confident is achievable.
Anyone with a larger holding, if you’ll come forward then as a group we can collective make a difference.
I thought it was worth trying to reach out rather then just see it crash till the end.
Well put. I agree. Have a large position too and not looking to sell for the next 2 years unless anything changes significantly. This stock will test patience and will pay off handsomely for being patient.
@Wyndrum, I'd hold Eve till I am comfortable with the vision, the day I loose faith in the business model, team or anything fundamental I would exit irrespective of the SP at that point 3p or 30p. If that helps.
CC just commented on Linkedin on one of their digital agency post which says Eve Oct sales up 138% and channel spend down 44%
DYOR
@wyndrum, in short term as I am not an expert trader and I respect on how you have read things so far, for me it’s hard to judge the short term stock movements but here are my thoughts for the long term in terms of valuation.
Positives
- Revenue 22m min guidance (I think they might hit 24-25m) plus more strong sales expected with the online strength to continue for the next 6-9 months.
- EBITDA from negative ~10m to now almost break even (I think this year they might turn a profit)
- optimised marketing spend, which will continue into 2021
- Invested almost 10-20m in brand awareness for the last 4 years
- More new products to launch
- Gross margin set to improve
- Operations efficiency will kick in as the revenue grows (They won’t need twice the team if sales were to double)
- Great long term vision
- Good product reviews
- Thoughtful branding, moved from a mattress brand to wellness brand.
Negatives
- Historic baggage of team issues, growth, cash burn, sp crash
- No founder left with a large equity stake
- Product failures
- The bubble around mattress in a box is over, only few players will survive for long term hence the VC’s are very cautious in putting more money in this sector.
Considering the negatives and positives, I still think it could easily be a 50m - 100m value in the years to come which is a decent ROI against the risk.
I am a founder of an online/retail group and feel there are lots of positives to be expected in Jan update based on what is see on google spend and online activity in my own businesses.
DYOR
Cheers
Well said, cant say it any better then Simms45. Good time to add. @Wyndrum well timed at 6 but I find it hard to trade in Eve and hence will keep adding at every drop!
Hi All,
I am new to this board and appreciate all different views.
I’ve held Eve for 2 years and added more in the last few months at all different levels. I personally think it’s a hold for a while to unlock its true value given the previous highs and lows are behind us. Once they learn to grow profitable sales for few more quarters, new investment for growth or acquisition would be a natural next step unless they can continue to grow over 30% YOY profitably to remain a niche medium size company.
Apart from the charts, the key metrics for me is the leadership team, customer reviews on product quality, (I may ignore some delay related negative reviews as they might be growth related) new product strategy and SEO strategy, currently they are ranking on Page 2 in organic searches on Google for “memory foam mattress” this can be a game changer in terms of reducing their marketing spend vs Sales once they get to page 1, which with my research could take them another 3-9 months.
If any of the above metric shows negative signs, I would be highly concerned.
DYOR