Another serious buying by one of BRG's independent directors, Lawrence Myers.
This time, it's 25,000 shares for $223k.
Over the past 12 months, he had spent a not so trivial amount of $738k buying BRG shares.
His holding balance is now 200,000 shares.
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
| 1 |
Date |
Name |
No. Shares Before |
Buy # Shares |
Buy $ Amount |
Buy Average Price |
No. Shares After |
| 2 |
26/02/2016 |
Lawrence Myers |
110,000 |
20,000 |
$147,455.68 |
$7.37 |
130,000 |
| 3 |
02/03/2016 |
Sally Herman |
15,000 |
5,000 |
$37,702.00 |
$7.54 |
20,000 |
| 4 |
26/08/2016 |
Lawrence Myers |
130,000 |
30,000 |
$245,728.43 |
$8.19 |
160,000 |
| 5 |
26/08/2016 |
Steven Fisher |
70,288 |
12,000 |
$97,860.00 |
$8.16 |
82,288 |
| 6 |
26/08/2016 |
Dean Warwick Howell |
110,000 |
10,000 |
$81,300.00 |
$8.13 |
120,000 |
| 7 |
26/08/2016 |
Timothy Michael Antonie |
|
20,753 |
$170,185.90 |
$8.20 |
20,753 |
| 8 |
23/11/2016 |
Sally Herman |
20,000 |
5,000 |
$43,793.61 |
$8.76 |
25,000 |
| 9 |
13/12/2016 |
Catherine Jane Wright |
|
5,000 |
$41,829.26 |
$8.37 |
5,000 |
| 10 |
14/12/2016 |
Lawrence Myers |
160,000 |
15,000 |
$121,796.88 |
$8.12 |
175,000 |
| 11 |
14/12/2016 |
Steven Fisher |
82,288 |
10,000 |
$82,210.69 |
$8.22 |
92,288 |
| 12 |
24/02/2017 |
Lawrence Myers |
175,000 |
25,000 |
$223,189.71 |
$8.93 |
200,000 |
---
On the HY2017 result presentation, BRG gave a preview of the upcoming launch of the next generation espresso machine, Breville Oracle Touch.
Apparently, the launch of this product has been moved forward by 6 months.
The evolution of Breville's flagship espresso machine that started with the Dual Boiler, which is then followed by the Oracle, continues with this machine.
As can be expected, the RRP of the new machine has also increased.
The Dual Boiler's RRP is $1700 (comes with free Smart Grinder Pro).
The Oracle's RRP is $2600.
The New Oracle Touch's RRP is $3500.
Jeff Clayton's strategy of turning Breville into the Dyson's equivalent of kitchen appliances is well and truly underway.
It is also worth noting that even after the latest flagship product has been released, Breville continues to sell the older generation's versions. This strategy completely imitates Apple's playbook which clearly works in practice.
Harvey Norman has started selling this on its website:
http://www.harveynorman.com.au/kitc...breville-the-oracle-touch-coffee-machine.html
----
To summarise, these are BRG's strategies going forward:
- Continue developing aspirational flagship products that are the market leaders in their respective segments.
- Faster product design and development cycle
- Increased investment in R&D and marketing
- Enter new markets (using either Breville or Sage brands) and widen its market reach
- Transform the supply chain model to drive further efficiency gains
After posting relatively flat profit growth for 4 years, I believe BRG is about to enter the next phase of its growth.
(20min delay)
