Originally Posted by
simla
Yes, I reread that report. I felt it portrayed that they were as surprised as us that the last couple of years have proved such heavy going, and that the transfer of distributor was quite so disruptive. But also that they nevertheless feel that the right things are in place and that it was likely to pay off sometime soon. But with the caveat that they hadn't expected the last couple of years to be that difficult, so they were cautious about being too confident of the future, as I suppose we are too.
Cautiously optimistic, in short, though. That's my reading anyway.
Another thing I picked up this time was that Stratum (NNB, as they are now referring to them) maybe have stronger existing relationships in Europe in this area? Anyway, they did say "strong interest in BLIS ingredients in Europe" and "[Europe] is anticipated to be key to the future success of the Company and NNB". (p8) Plus some confidence that Japan was going to pay off for them, which is good considering what a huge population it has. They also noted that Stratum made "better than expected progress in Europe and Asia" (p3) which is good since Asia did not seem to be going that strongly under the previous arrangement.
Plus those four key phrases: "we anticipate ingredient sales to increase materially" (p6); and "the route to market has been determined in China and this will lead to new business developments in the FY 14" (p11), and "[USA] projects starting to come to fruition" (p8); and, as mentioned, "strong interest in BLIS ingredients in Europe" (p8). We wouldn't need very much success in any of those markets to be pretty happy.
I noticed, too, that Stratrum has "developed sales and marketing strategies" (p7), described as "upper respiratory, otitis media, halitosis and applicable immune application for BLIS K12" and "teeth and gum health for BLIS M18". That's actually an interesting realignment, I thought. So they have taken "gum" off their target list for K12 so as not to confuse the M18 issue, and specifically decided to aim K12 at broader health issues. I think that is pretty sensible and some good work by somebody.
I also appreciated that the company was able to be so very clear in describing what they thought the last year or so had been about, which they then summed up as, "Execution has proved frustratingly difficult"(p6). I'm certainly extremely grateful to them for boxing on with what must surely have been fairly discouraging progress at times.
And, yes, many thanks indeed to departing Dr Max Shepherd for many years work as a director of the company. I think we are very lucky that the Blis Board uncomplainingly box on year after year, and have definitely brought about a very significant improvement in the outlook of the company.
"the Company remains confident that it is on the right path to commercialisation" (p11). That's the question on all out minds. After re-reading that report, I personally tend to agree. The change over to Stratum now seems to have got into gear with the suggestion of delivering revenue in the nearish future. If that happens, I guess we will all be very happy. Until then, bated breath? But I personally remain of the view that the current share price is absurd. The share price paints a picture of a company on its knees. But that wasn't what I saw in that report.