I have noticed those ads for the last couple of days. Is it co-incidental that they are rolling out the ads at the same time that they are considering de-listing.? I don't hold any shares but I buy the Travelguard when I am travelling.
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I have noticed those ads for the last couple of days. Is it co-incidental that they are rolling out the ads at the same time that they are considering de-listing.? I don't hold any shares but I buy the Travelguard when I am travelling.
Yeah this is a fair observation. No pointing in us dwelling too much on the mistakes of others. The management should learn from them though. I back the current management and the strategy. Been waiting years for GRAS and access to large markets. That has come about in the last year or two. They just need more cash to survive another year or two I reckon...
I presume that either Pharmabroker have decided to invest more in the brand, or that Blis have pressured them or a combination. I wonder who is paying and how? Cash from Blis? Reduced share of the sale for Blis? All funded from Pharmabroker? Either way it should grow the overall pie, but as NZ is such a tiny market it won't make a huge difference. Perhaps enough to pay the difference between being on the NZSX versus Unlisted?
Cash flow may be the link between all these things that are confusing us. Maybe the large shareholders have said they might put cash in, but like the rest of us they are getting a bit fatigued at the ongoing jam tomorrow, and are pushing for more short term cash flow. Maybe that started last year with the disappointing sales in the 2011 result.
Gourmet was bought, partly for cash flow we were told, but in the event needed quite a bit of cash in the startup, but looks like it might generate cash soon or maybe already. The change in distributor was obviously to increase sales, but again absorbed a lot of cash in the meantime. Is it producing more cash flow now? The ice cream is being rolled out nationwide, generating cash hopefully, presumably at some cost initially. The K12 ice cream looks to me like it will produce cash, but that must have been a punt at first. The TV ads should produce cash flow. Stratum are presumably going around pushing as many buttons as they can with current outlets. The delisting proposal was entirely couched in terms of cash flow, as it obviously has no other advantage at all.
But meanwhile the company is no doubt proceeding with future investment also, which can chew up quite a bit of cash.
The issue was announced in March, and Murray & Co called in before that, and yet we have no details months later. The delisting papers suggested early August was a key date. All of which perhaps suggests a pause before a decision. Why?
My own calculations suggest that the growth in ice cream sales plus a K12 sales increase of 20%, both quite plausible events, might be enough to let the company achieve a slight positive cash flow if they are careful, but don't ask me to prove that because I can't, not least because I have no idea of current sales, nor what the ads and ice cream rollout are costing, nor if they are engaged in other major projects. If the company decided it could get by with only a few hundred thousand extra as a margin of safety, but the prospectus cost etc meant they needed twice that, they might be waiting to get a better feel of their needs? After all, the last report said their cash flow forecasts were okay given various future possibilities - might that include an ability to hunker down and get by?
So maybe what's going on here is that the company has two or perhaps three paths forward, and they are waiting for more market data, current sales and expected orders perhaps, before committing to one path or the other? We can't tell if there is a difficulty finding cash, or merely a choice being made between two or more available options. But the strange delay might suggest the latter? Or not, of course. In short, maybe they haven't told us about the next issue because they haven't decided yet.
iChoice Reach is another new product with K12 and M18 in it. I'm not quite sure why they have bothered as it is swallowed with water. Good for sales but bad for the K12 and M18 brands.
http://www.lyf.com/ichoice-reach/
iChoice Block is better as it least it gets dissolved in the water and might be slight efficacious.
http://www.lyf.com/ichoice-block/
That might be more than it appears, Emearg. The second one says, "A delicious pre-meal beverage". Beverage? Is this GRAS? Is this the beverage technology that they told us about last year? Ichoice Block was around at least last November, but I can't find out if it had Blis in it at the time. Well spotted.
I think not Simla. Both products have K12 and M18 in them. M18 doesn't have GRAS.
I also found product sheets for both with copyright of 2011:
http://www.lyf.com/files/2012/06/ich...eets_reach.pdf & http://www.lyf.com/files/2012/06/ichoice_fact_sheets_block.pdf
How long can posters speak just plain crap - unless it is their job to do so!