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2.5¢ yowie group ltd

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Davisite

10,813 Posts.

863

16/02/18

15:53

Post #: 31113205
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Originally posted by Teddyward ↑

Dave with existing court cases, cost of closing down business, 1.7 mill owed to client etc etc and the incorrect assumption of their current cash is a novice mistake if this were to be a asset strip. This is still a operating business with contractual obligations and no one is going to give them a get out of goal free card when they have $ left so a liquidation price would be half of existing cash burnt IMO if it was a friendly liquidator not a shark ..

With ref to LC why would any buyer push the price? Just looking at TA I guess and hoping a bounce from oversold. What would drive that as they have done a downgrade a week before half year out and new bloke didn't even step up and put his name to it and hospital pass to co sec?

The fund grubs won't push it as they will absorb and keep lowering price of entry till they have had their fill.

What is the possible buying pressure ?

Announcement soon in regards to business direction but 3 choices

1) shake it up? change startegy- how will that increase value

2) same just executed better- possible that a lot of hard work done and mistakes behind as IMO Bert was no fool but that won't get people salivating as they have seen it all before . unfortunately that is retail and manufacturing - hard slog unless you can leverage off it and get your branding and have income off all the ancillary things

they can't compete on price IMO due to scale so they have to create value and demand in other ways and spend cash to do it - it will be a slog but a lot must be in place already as quite a bit of the bull crap sorted by predecessor.

3 Liquidate- ahhh well - not even the vultures will have full feed at current price after case settlements, shut down retrenchment etc etc. few machines and nothing else . Go long on collectables as they will become rarer!!!!!

Half yearly
So will there be a knee jerk to get court case off table and realise the $ , will numbers be any better - what in the last 10 days? Something doesn't add up in regards to write off recently in a big way and something doesn't add up in introduction and sell through in new markets they have just entered or initial stocking orders so a new CEO would do well to clear the air regardless of share price consequences to get rid of overhang.

New bloke was responsible for USA so no excuses for not knowing what is happening and why such poor numbers.

Until we see performance that is relevant to new management policy not just adoption of old policy no one will revalue this company. Old policy had ability to set on right path but required spending and new policy is a unknown and massive risk.

Commit money to business so vultures have nothing to squabble over would be what I would do. Vultures either buy it out at a premium quickly ( yeah right not likely) or trade their way out as pointless getting control of a shell they have paid too much for.

Bit of a dog gamble and hard to value either way

Expand

Yes to say YOW is cash backed is underestimating all the hidden liabilities and cost of shutting down the current operations.

If I was a vulture what I would want to do is get control of the board, offload the current business as quickly as possible, vend in some overpriced asset I own, then sell out for a profit. This approach does not require that the YOW is cashed back, because you can make it up on vending and offloading side.

I just can't see a good way out of the mess that YOW is in.

YOW Price at posting: 10.0¢ Sentiment: None Disclosure: Not Held
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