I agree Paoloh. The input costs have accelerated beyond belief...

I agree Paoloh.

The input costs have accelerated beyond belief in the space of just 12mths! The problem is the cost side of the equation. I have to say that GM look like the norm from now on. i.e GPM of ~20%. This is why a lot of effort now needs to go into sales. I believe that the martek patent has now expired and CLV can now produce DHA from algal sources using the same/similar manuf process. Good news as it will mean that CLVs customer scan make the same claims re; taste/vegetarian etc.

Having all this, if revenue had accelerated on-trend we'd be in a much better NPAT and cash position. Cash does look slim when you look back historically. In my opinion they'll be looking to utilise/sell down that inventory to bringg cash back up above 10Mill. If they can achieve this then they'll have to do a CR based on CAPEX and OPEX in the med-term.

I look to buy below 20c if it can get there.