Member Info for oldandtired

The problem for Distil is that there is no valuation support for the shares at this price. The price assumes that the brands are takeover targets. But what happens if nobody is interested in buying the brands?

I don't believe anything the directors of this company say about anything. I notice that the pump and dump merchants have moved on from this stock. It probably got too boring for them once previous holders of this company had their say.

The shares are now 12.5p to buy and are now in the money. If the ordinary shares rise 5%, the subscription shares should quintuple.

I have been accumulating the subscription shares for a while. They are currently 12.5p to buy and I think they represent exceptional value at this price. If the shares rise 5%, the subscription shares should quintuple.

Haggis, when you're in a hole, stop digging.

Haggis, you have just proven my point.

Haggis, it's amusing that you accuse me of talking my book. This is exacttly what you are doing; classic projection.

The share price was going nowhere until Shares magazine tipped it two months ago. This was the reason that the share price shot up. You can't complain now that Shares magazine thinks the share price is too high. They have certainly called it right so far.

I see that Shares Magazine has said to sell Distil today.

The point that I am making is that like for like sales haven't increased very much at all over the last year. Given the prospective pe ratio for this company (100!) for 2017/18, the revenue growth rate is too low.

I found the company's excuse rather unconvincing. Christmas has a huge effect on drink sales but Easter's effect is much smaller.

The previous quarter showed revenue growth of over 70% on the previous year. Given the huge marketing spend in that quarter, I expected the fourth quarter to show more than 70% growth on the previous year, not less. The fourth quarter traditionally has lower sales than the third quarter but the drop this time is much bigger than expected. The update is particularly poor given that more outlets are selling Distel's products this year than last.

I am amazed that the share price has not fallen heavily given how bad the update was. On earnings, the company is massively overvalued. The only logical explanation must be that a takeover bid is highly likely. On this basis, the company might even be a buy despite the poor earnings outlook.

We''ll see where the share price ends up today.

This is a very poor trading update indeed. The rate of growth has slowed dramaticially from the previous quarter. Once the update is absorbed by the market, I expect the shares to fall today.

The recent rise in the share price looks increasingly strange. The current market cap is completely divorced from fundamentals and I cannot see why the share price is rising. The only thing That I can think of is that there might be rumours of a bid in the offing. Without a bid, I expect the share price to fall heavily after the next trading update.

The offer price is back to 20p and you can only buy 1000 shares now.

All of the trades at 10p are buys. The bid/offer spread has been cut to 6.68p/10p. Almost 100,000 shares bought today. This looks like a decent punt at this price.

After reading the link from Flaberghast, does anyone serously think that this company is a good investment?

For a more realistic view of the company, there is an interesting post on advfn. To summarize, if all the loan notes are converted, there will be 69m shares in issue and the net cash per share is approximately 32p. Also, the annual running costs of the company are extremely high, possibly as high as 9p per share.