Member Info for wyndrum

Vern, it suggests there is buying going on in the background. Now i'm interested.

Yep, thats the other side of the argument.

Pay your money take your choice but here's the thing.

I care about the SP not the company.

All you say may come to pass but how does that affect the SP and when and by how much?

Its a game thats for sure.

Hi D, if you are correct then I can see EVE being shut down in as much that all the staff would be made redundant. (they would have their own marketing, IT staff and directors and would not need perhaps any EVE personnel.

They then run 2 brands, every EVE sale might simply be taking away the sale of the other brand which might be a better profit margin? I don't know, but its likely to be much more complicated and not perhaps as straight forward as some here think.

DFS, the contrary argument is: why buy EVE? just carry on taking stock from them as and when sales require, rather than having the overhead of running the whole enterprise?

Anyway who knows, I only mention the potential other side of the coin so all ideas are thought through. If at the end of it it still looks a good risk reward then do that thing.

ha! Thanks for the tip Vern.

Its very opaque at the moment. Good for DFS, but we don't know if their resilience reflects EVE products?

We don't know how EVE themselves are doing re: sales. or any of their other outlets.

Its a stretch to believe amid all the dismal retail reports that EVE is shining through when they haven't managed to do this in better market conditions.

I still think the "unknown" for anyone here to value the business, is the amount a new owner would have to put in to run at a loss for the unforseeable future.

How much would it cost and for how long? Its a difficult forecast to make. Why would anyone jump in right now?

I am not saying someone won't, but just acknowledging the difficult times we are in. (Plus their own business may be suffering too), so its not a great time.

Morning Vern, Maybe... but the backdrop is pretty poor...

"Retail sales are falling at a rate "not seen since the depths of the pandemic", as price rises hit household budgets, a UK retail body has said.
Shoppers are cutting back on white goods such as fridges and dishwashers as well as opting for cheaper brands, the British Retail Consortium added.
Sales in shops and online have dropped for three months in a row, figures from the BRC and accountants KPMG indicate."

Vern, the lack of volatility suggests to me that (given retail investors tend to be nervous emotional wrecks), that they would have sold over the last 0-18 months.

That then in theory puts them in the hands of the speculator, but they tend to be even more prone to SP moves..

So its odd. An explanation might be the SP fell in such away as to keep PI's hanging on and not selling with the false recoveries giving hope, to be now so underwater as to not bother to sell?

Or MM's are buying the stock and holding but that would suggest inside info and its been so long that I think that would have surfaced now into the general ether.

But it does suggest to me one positive rumour and it will be a big move.

Heedless, good link... but a bit of nothing to see here, move along...I think after all.

(If both have been in from the start then this would have been written off years ago.)

Hi Vern, only that anybody who is buying in now that does not have any more inside info then all here know about, is (imo) taking a very big risk.

My only surprise is that there has been less volatility in the SP. I would have expected much bigger swings on rumour of buying and selling etc.

Its possible, if they do (as seems is the case) exercise a spray and pray philosophy, that they might also expect a spike at some stage and then quickly bank the profit?

Anyway, fingers crossed something positive develops.

Maybe their £40k is the equivalent to my £500?

If not, then its interesting because 2% is pretty irrelevant in any sort of buy out, and they need to deal with EVE directly rather than buy stock which just goes to the seller and broker.

So is it just a punt or is there more to it?

Certainly I can't see anything negative in it and as a result that can only mean its a positive.

D, do you know that this is a recent buy? I see it is declared on the 6/07 but is that the same as saying that was the date of purchase?

Hi D, I have considered it, but there is no change in the info since the RNS, therefore there is no reason to change my view that it is more likely than not that it will either go bust or be taken private, either outcome being nothing in it for shareholders.

(If you have seen the chart it was very over sold on the RSI staying at 9 for quite a while before the latest rise last week pushing it up to 21. Even though that is still pretty much over sold it also looks like (at this point), just an unwinding to allow further falls.)

So I can't find any reason other that a wish to fantasize about a 3-5p take out price to warrant any money going in yet.

2.2% looks like just around £40k's worth.

I don't know what price they originally paid or when, but its difficult to see a great significance based just on that?

Maybe yes Vern, but a new company won't turn it around over night and changes cost money, I don't think its beyond imagination to say the "new" company could burn through another £10-15m before any profit is seen?

Thats worth what, 3p a share, a bit more? and thats before any cost of actually buying the business

Afternoon D. Its difficult to know because we are not privy to the info but. My thinking is if EVE are so good fundamentally as a company with good products, but poorly run then they would have been bought out by now?

And while its equally impossible to know, it is likely by EVE's admission, that sales opportunities are going to be less rather than more going forward, due to the recession. So, its not about what EVE is worth today as much as how much money will have to be put in to shore up the likely losses over the next 12-24 months?

Vern: "... because there is undoubtedly good sustainable profits to be made."

so you and others say, but its a bit of a leap for me. (What do you mean by Good, by the way? 10% profit margin, more?)

When the lockdown came EVE jumped ahead in sales and really only at that stage lit the fuse to a potential sustainable business model being viable in the near future.

Since then it has stalled as we have come out of lockdown. (That may suggest, that the business model is not "undoubtedly" as robust as you think?)

Unfortunately we don't know what costs can be cut further or at what scale, to actually know for sure that even another business could remove certain overheads out of the EVE model and make it profitable.

Is it the production process? If not all mattresses are the same, then presumably there is an "X" factor that EVE have? Maybe that is too expensive to produce for what the consumer market will bear?

The level of matching/close discounts with competitors suggest the market, unsurprisingly, is not quite so fussed about EVE products per se.

This gets into price/perceived value. And thats where you would like to think CC's marketing skills count. But so far its not been enough.

It looks to me, looking back on EVE since floatation, that they have basically gone around in circles, trying various different ways of breaking through with little effect.

Sales seem to increase in small fractions while costs are permanently rising faster, forcing cost cutting where it can be done, how long can this continue? Again, it looks to me that the cost cutting exercise is exhausted because as soon as there is a downturn in the consumer market then EVE quickly unravels.

So when you say ".... because there is undoubtedly good sustainable profits to be made.". I am not convinced.

DGU, 10p per share values EVE at about £30m for being a loss making company that has never ever turned a profit, trying to stay afloat in a recessionary inflationary market with spiraling energy costs, market

What so special about 10p rather than 9p or 11p?

How do calculate 10p per share as fair value?

I don't use Twitter and I don't care about what he is doing elsewhere.

I just want to see what his argument is. If it is as I (and probably others here suspect) simply unfounded crapola then its easy to filter him out. But I would like to find out for myself

Because Tim, its an odd stance that poster has taken from being so positive to being so negative. And rather than just assuming any ulterior motives I try to engage in a discussion to find out his reasoning.

If it turns out he wont engage or has no coherent argument I will ignore/filter him.

just googling it gives me a chart. Certainly it is currently making a nice pattern from the .005p low with higher highs and lower lows.

Given it steeped down to its ATL, there are a number of short term targets.

Also you can choose where to place your stops depending how much you want to risk.

But please be aware that the smaller the stock the more vulnerable it is to big moves on small volume. This severely decreases the chance of the chart being a indicator of the next likely move.

(TA is trying to tell you based on a high number of buys and sells what is most likely to happen next. If that high volume is not there, then its a bit of a lottery.)

Anyway you can see for yourself , but you can choose just below either .07p, .06, or .05p as a stop, with .10p, .11p or.15p
as targets.

Personally I would not entertain this as a stock to trade.

I would look at some of the ftse 100 companies as better vehicles to play around with.

Typically TA is used for shorter timeframes and small percentage gains. If you can scalp 3-5-10% a trade, then it soon adds up.

Sorry DD I can't find the Ticker on the HL platform?