YOW 0.00% 2.5¢ yowie group ltd

Nice!! Short drive for me. I'll be swinging past tonight to pick...

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    Nice!! Short drive for me. I'll be swinging past tonight to pick up a few. I've been looking (unsuccessfully) since launch but found some in a speciality store in the Blue Mountains (Leura).

    My youngest spotted them in the glass Counter display and helped himself by going behind the register and pushing past his legs to get at them. Clerk thought it was rather funny and I'm sure this sort of thing happens all the time.

    From an investment perspective, I'm a former holder who sold out at a little over $1. I've been watching ever since and looking for a re-entry.

    I did have low 30's as my target assuming a small FY18 profit and a highish PE circa 20-30 times (not too stretched for a high revenue growth company).

    I've always applied an extra level of risk to this one in my decision due to a number of reasons. Primarily amongst those were the over exuberant predictions from Loxton and subsequent misses. Additionally the chopping and changing of reporting revenue $ vs counter sales $ vs units sold and then trying to understand lag between operational costs and realising revenue from that expenditure. In other words....I have no idea how much it costs YOW to make and sell a unit. I have little clarity over economies of scale and therefore forecasting EBIT is hard.

    Then we have uncertainty regarding Hank/IP legality and market sentiment plunging lower.

    The market MAY be irrational at this time but it can stay so far longer than I care to predict. I'll be on the sidelines until report and possibly also case outcome later this year.

    I'm expecting some capitulation around about now as tax loss selling washes through and those brave enough could get a short term bounce. Not my game really.

    Good luck to all holders and hope to see you on the register at some point in the future. In the meantime I'll be eating chocolate.
 
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