Two shops and 'strong trunk sales' ($738k last quarter) does not make a global online phenomenon. (Trunk sales: a euphemism for car-boot sales or high street market stall?) Tellingly, there's no mention of online sales figures because, obviously, there embarrassingly small. For the $6.7 million spent FY16 to achieve $1.88 million in sales, I bet percentage online sales were lucky to scrape double digits.
This extract form the top page 1 of 29 April 2016 quarterly:
Hailed as an innovative industry leader, Plukka is disrupting the highly fragmented, off-line and largely un-branded traditional jewellery industry. With industry spending forecast to reach $370B in 2020*, and with 10% of spending shifting to online, Plukka is uniquely positioned to capture this new and dynamic jewellery market.
According to the PKA Prospectus, annual jewellery sales were euro148 billion globally. What's $A1.88m/euro148b rounded off to 4 decimal places? ZERO. Was it then not misleading to claim 'Plukka is disrupting the highly fragmented, off-line and largely un-branded traditional jewellery industry'?. In what universe is PKA disruptive except for its shareholders pockets?
The much-hyped erstwhile MD, Joanne Ooi, who birthed this (disruptive) conception, was sidelined in less than 6 months at the helm. Natalia Obolensky was appointed MD on 26 April 2016. Follows an extract from the PKA prospectus:
9.6 Agreements with Directors or Related Parties
(a) Executive Service Agreement - Managing Director ii) The agreement may be terminated: (B) by the Company on one months’ notice if Ms Ooi, a. is unable to perform her duties due to illness, accident or incapacitation, for two consecutive months or a period aggregating more than two months in any 12 month period; or b. commits any serious or persistent breach of any of the provisions contained in this Agreement and the breach is not remedied within 14 days of the receipt of written notice from the Company;
or c. in the reasonable opinion of the Board, is absent in, or demonstrates incompetence with regard to the performance of her duties under this Agreement, or is neglectful of any duties under this Agreement or otherwise does not perform all duties under this Agreement in a satisfactory manner and has been counselled of three separate occasions and has had a reasonable opportunity to remedy the specific matters; or
Almost 4 months later, JO is apparently still on the same contract otherwise the expectation is a change in a material contract like the former MD's would have been reported to the market.
How much longer are the directors going to indulge Joanne Ooi's whim? If Plukka has such great potential and is truly disruptive in its fields why aren't directors and management buying up shares? From my perspective, the board is indulging a capricious destruction of shareholder funds.
Still waiting for the punchline.
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