Member Info for threeputt

continued......

"In Note 12 on page 46, customer lists are shown with a value of £2.2 million. These are basically marketing costs which the company has chosen not to recognise as expenses during the period when they were incurred. This is highly suspect, in my view.

On top of that, there are another £580k in product development costs which have been recognised as assets rather than expensed.

Hat-tip to the message board users who pointed me in the right direction, noting that the company's reported earnings were questionable. I'll certainly be staying away from this share for the time being."

Stockopedia were pretty scathing in their analysis !

"It's trading in line with expectations.

Checking an intraday chart, I see that the share price fell before the AGM. So I can rule out the possibility that something said at the AGM provoked someone to get out in a hurry!

This update reads quite well:

revenues +38% in first four months of the financial year
Boots increasing shelf space for Roots. It has already rolled out Skinny Tan.
Multiple distribution agreements for Prolong.

I've found a possible reason for the share price fall: what sounds like a delay in material revenues from a new skin-care category:

"...the Company expects revenue contribution from this brand will be more keenly felt in FY 2021 as the brand establishes itself. We believe this has the potential to disrupt a large category which has received little innovation in recent years and presents a significant opportunity for us to cross-sell to our large self-tanning DTC customer base."

FY 2021 begins in July 2020.

In the previous update, Innovaderma said:

The new products will be provided with prominent shelf spacing from Superdrug and sold via the Company's DTC platform in the first quarter of calendar 2020

My view

The possible delay is not a big problem, in my view.

This share has been tempting me for a while, but I've stayed away for a variety of reasons:

not understanding the rationale for IDP to have a portfolio of products in different categories at this early stage of its development
noticing bad online reviews for some of its products

However, on the back of today's update, and noticing how cheap the stock remains, I've done a little bit of extra digging.

I now have a few extra reasons to be cautious about this share - this may be old news to some of you, but here we go.

In September last year, the Executive Chairman sold 1 million shares at 150.6p. In May 2018, he sold 775,000 shares at 132p.
Offsetting these purchases, some of the directors made pathetically small purchases of shares, which look as if they were purely for show.
On a more serious note, I see that the company has a habit of capitalising its product development costs.

In 2019, the company capitalised £884k of product development spending and purchase of intangibles. If you check the final results (in particular Note 25), there is no evidence of any amortsiation. Profit before tax was £1.4 million, but it would only have been £500k if they had expensed their product development costs and purchase of intangibles.

Red flag: curious, I pulled out the company's annual report for 2019.

On page 37, the company says that it capitalises "separately identifiable direct costs incurred in the creation of customer lists... costs have been recognised with the specific task of customer acquisition".

In Note 12 on page 46, customer lists are shown

I can't agree, I'm up 20% this year on trading aim shares, a lot of those are dividend payers, as long as you avoid the gutter end of aim there are companies making money. I don't tend to invest in oiles or resources as a norm, this is the only oil share I currently own

we've seen what happens when something finally comes to fruition, in EUA, wonder if some of the profits might come over here on the same premise

Only a gut feel but I feel that the market might just hike when they feel an outcome is close

not sure about 'more savvy' but I note they did state they are only "considering" an equity raise. more than likely a done deal however now that they've put it out there, I suspect the temporary medical leave of the Group CFO can't be helping with the decision and implementation of that one.
I watch and wait with interest

Maybe they've already sold the boat, a tenner on ebay isn't exactly rns worthy.......

https://www.youtube.com/watch?v=nbVvbDAEfkE

or SIPP

I don't reckon all of the EU countries will agree a delay, France or others may not for example as they've just had enough of it all imo. Surely then parliament would have to vote on Boris's deal, and would have to either back it or else crash out with no deal

What number do you believe the board would sell for as a minimum ?

In theory BunsenBurners point is valid, there is always a risk that the board believe the best offer doesn't match their own desired target, the ACSO rns today is the sort of worded rns I would fear from our own, it read:
"The Company and its advisers have now received refreshed indications of interest from a number of the interested parties, none of which are at a level that the Board feels offers sufficient value to shareholders"

Hope he's doing better than his namesake (ie not City)

Meant to say I particularly like Ten's implementing Escape Rooms into their entertainment centres, I think these could prove to be very popular

his books are a fun read though with good advice and has turned my fortunes around no end since I started reading them 3 years back, even had a couple of times when he's ended up buying a share I bought far lower (he says with a huge grin !).
Got a lot in here which I believe will do well

only irritation that I didn't add as tempted in the 16's, had a gut feel it would have a bounce and I know I would have traded them already but hey a nice 10% would have been nice.
Happy with my original holding in the 11's though

when greed starts to take over.....

Your advisers don't know what they're talking about then, personally the managed fund I am in has made my sipp a fortune for me in AIM (by buying shares in good companies), and my own portfolio is doing equally well in AIM (up 18% this year alone)

I've always kept in the back of my mind those huge director deals back in Jan around this price. Thy must have known they would be making a sizeable profit on them in the future.

Quite right, I would never buy on a tip, not until I've researched it and the inevitable pullback after the tip.
I can however recommend NT