thank you. great post. I have heard a lot about CLQ. Time for a...

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SelmaBouvier

3,692 Posts.

24/01/15

18:57

Post #: 14636466
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Originally posted by herbalist ↑

Hi Suzanne,
Looking for the next AJX are you.
I would disagree with some extent to Macs comment. What do we know about the merger? Well it appears that for the doubling of the share registry we will be increasing gross sales by 5 x. What we don't know is their profit margin but it could hardly be worse than CNN who I think in their last annual reported a NPBT of 10 %. One hopes that this can be remedied on volume.
Indeed whilst I would think the margins for plastic bags are inherently small there is a much greater margin available for feminine hygiene products and medical films, just judging by the what appears relatively high price of those products compared to what you get.
Looking to the future I would have also thought that it will be easier to penetrate western markets with biodegradable feminine hygiene and possibly baby nappies than plastic bags where there are programmes and alternatives available.
In relation to the capital raising, this is as referred to in the annual report to fund the production of bags for the full order book in Brazil ( and possible expansion of capacity? I hope). Capital raises are a fact of life for these small companies. I do not necessarily view it as a negative.
I don't see any effect from the share consolidation.
At current prices I see little downside. I see this company as having the right product at the right time. the only question appears management.
At the risk of ramping a stock I hold, have you checked out CLQ.

cheers DYOR
Herbaliser

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thank you. great post. I have heard a lot about CLQ. Time for a closer look. And yes, exactly! thanks again

CNN Price at posting: 0.2¢ Sentiment: None Disclosure: Not Held
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Add CNN (ASX) to my watchlist

thank you. great post. I have heard a lot about CLQ. Time for a...

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