same here... just by reading the announcement, i don't see the reason for a drop. company doing as they expected. Or maybe ppl who made profits (who bought at around 2c or less) just selling off?
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I see two drivers now going forward firstly the long awaited start of profits and the second being the:
"internationally there is a wave of interest in what is being termed the microbiome. The microbiome refers to a relatively new area of understanding of health where communities of microbes living within human bodies can influence wider human health but which also opens up options for the microbiome to be managed through the delivery of healthy bacteria (probiotics)." and this in relation to the wave of issues with the use of antibiotics.
Gunny
Gunny
There had been about a 70% increase in the SP in July until the drop back today, prior to the after hours update. The market was anticipating some very good news...
Before you get too excited, have a look at BLT chart history. There is always a big jump around every announcement date, and this time they actually were expected to announce an actual profit figure.
The big news for me, and I just did not expect it, is the idea that the share price is already potentially underpriced for the already existing profit - depending on what maths you use obviously. It will be fun watching what the market does with that.
My opinion is the share price was already too high on excitement leading up to annual meeting.
Based on the information released the firm is on track to do as they say they will, which is always a good sign.
Profit expected, but no dividend.
My value based on revenue of of past $5.6 Million and forecast in excess of $8 million
At $8 million = 42.85% growth would give me 3 cents per share
At $8.5 million = 51.78% would give me 4 cents per share
At $9 million = 60.71% would give me 5.4 cents per share
*I won't consider higher for if they were to expect higher than 9 million they would have probably said it.
Even on my high valuation at most I get is 5.4 cents, but I think its closer to 4 cents on a fair value basis for now, of course others will have higher valuations than me and thats fine. I am a much conservative investor and I never like to be too optimistic on ideal prospects when it comes to growth companies without a good track record.
Yes, but you have to figure other things in. Such as the revenue growth recently. We don't know if it will continue, but you can't ignore it surely.
And now 8m plus - and already on that figure in Q1 according to that release.
Also the fact that the company is engaging in a lot more publicity. It has been upbeat for a bit now, including the planned release of an investment research paper, new regular (?) shareholder updates, rebranding of packaging, and ads on TV again, and that must have a cumulative effect on the share price?
Also the fact that the NZX has done some pretty exciting stuff with PEs on growth companies over the years.
I don't know what the market will do. But surely there is room for interesting developments?
As far as I can see, the previous time that the NZX issued a Share Price Enquiry letter to BLT was in January 2013. In the BLT letter of explanation to that enquiry, they said that BLIS had given shareholders three months notice of its intention to enforce a minimum shareholding of 25,000 shares.
The 8 million in revenue was already known from the April 14th announcement and the share price jumped 10% and pretty much stayed there until recently....
The forecast profit is a bit ahead of where I thought it might be, so the structural changes made in 2015 have seemed to help.
I think the current share price is slightly overheated but if you believe this puppy will continue at upwards of 100% growth it's probably a steal.