Ann: Australian Market Update, page-75

It is going to take massive volume in all markets to justify costs they have locked in this business and even with a "friendly" analyst pushing out profitability years. Market can see unit costs in USA so it can't be lower shipping to Australia and having a effective lower sale price. They IMO have a efficient production and distribution system and with access into backend of major clients they can plan manufacturing JIT so not a lot of efficiencies where you can knock down costs that you normally can do in other businesses.. Huge risks is if they can get complimentary books, cartoons and scripts for films etc to a stage where any value can be attributed to them and they can actually sell the story that they really are "marketing "business and platform not a chocolate manufacturer. Their record on marketing to date on social media and all other platforms IMO has been pis s weak and not driven sales or brand recognition considering they have $ firepower in bank. IF YOW can't prove their business model and drive traffic and earn income from web interaction to younger generation and sell access to that database to others or leverage off it driving movie attendance and licensed products.

They have no buzz or cult following ATM.

Strategy change like boxed plastic dinosaurs with a bit of chocolate? Diversifying business and was the idea driven by them of Walmart. Are they a educational toy maker, chocolate maker , lic product maker for hire platform or what?

I hope YOW have been critically thinking internally and take effective action to not make the same mistakes again as they introduce to other countries and markets and relaunch new strategies in existing market and get some traction.

What they have achieved in accessing stores etc is no mean feat but wasted unless they leverage off it and get volume sales and get marginal unit cost of product lower..

All the bull and fluff is out of this stock as it is now simply more transparent and a case of what volume they can sell , what margin and what strategy they can use to get cult status , go viral and leverage off that to finance further licensing products.

There is massive execution risk as track history isn't stella so Bert and team have to clear decks and get moving to justify locked in base costs in this business .

Due to poor prior performance market will probably wait to see real numbers repeated before they believe the story and that management strategy is working. IMO. Market now understands the original strategy of offering high retailer margins got them in store and position in planogram but means that you can't apply same metrics to YOW and it's sales or statistics against other similar items.