BLT - Blis Technologies

[underworld]

I hope everyone noticed this in the report......

"The Company is investing in upgrading plant to a fully accredited “Good Manufacturing Practice” (GMP) status, regulatory approvals and new product launches. Depending on progress, the Company may consider options to support its growth and may seek additional capital by way of a placement and/or share plan.

"

[simla]

Oops, missed that. Sorry.

Probably also could have mentioned: "We are moving our focus towards being a supplier of BLIS®-branded finished goods (including prominent co-branding) to help ensure that Blis Technologies is recognized as the source; this is a means of future-proofing the business by developing a closer relationship with customers and consumers." p5. Is that a reference to surviving patent loss at some point maybe?

[Ghost Monkey]

Revenue and loss were signaled a couple months ago so in that respect nothing too 'out of the blue' here. Nothing that's going to light a fire under the SP.

Revenue didn't grow as fast as the previous year and Australasia sales are down a bit. But other regions seem to be doing well. I do like the sound of their research/product pipeline, that's the big positive for me. They've proven they've got the ability to develop and bring a product to market (though its taken awhile!) so I don't see why they can't continue to grow in this respect. They've got the base to work from now. That and Asia potential are what really interest me. Hopefully all these newly appointed directors and such can push this company forward. For myself, at least another year to go to see what results they can achieve before I'm confident with the future.

Happy to hold at this stage but no reason to increase/decrease my position.....yet.

[simla]

Well, the company is quite open that it spent a whole lot of money setting up a base for expansion. "In FY2017, we focused on establishing the fundamentals for sustainable growth".

The new guy has come in, spent a whole lot of money changing the strategy around and the board backed that. The question for shareholders is whether that will pay off. The company hasn't actually told us (that I have seen) what they expect the payoff will be. They haven't said they intend to now turn to pushing profits, or that they have an achievable plan to push growth. Since neither of those happened much this year, then we shareholders can't know what to think - as far as I can see anyway.

So, it was a more reassuring report. But I can't see how we can feel a whole lot different about prospects without waiting another year maybe to see what the company does next. Once again the report did not seem to mention the future much.

Just my view as a shareholder, as always. Feel free to disagree.

[simla]

Happy to hold at this stage but no reason to increase/decrease my position.....yet.

You probably said that better than me. I agree.

[simla]

But I admit that if the next report is not clear and comprehensive that I am starting to think it might be time for me to vote for some fresh blood on the board.

Well, I might have hoped for more detail, but that was much clearer than last year's, which I felt was more generalised. So that's off the table for me happily.

[simla]

Disc; I've lowered my BLT exposure 25%, but retain 75% (happily well in the green zone.)

Yes, I sold enough to show a small (tiny!) cash profit so that I could stop being so concerned about the future outcome. If Blis lives up to it's potential then a year's growth should cover us both on that front, and if not then less to gnash teeth about!

[simla]

Well, it doesn't look like the market is going to react to that report up or down. Next news AGM presumably.

[Leftfield]

Yes, I sold enough to show a small (tiny!) cash profit so that I could stop being so concerned about the future outcome. If Blis lives up to it's potential then a year's growth should cover us both on that front, and if not then less to gnash teeth about!

Let's hope we are both right. We may also be well positioned for a possible cap raise!!

Looks like the new management is taking longer to make progress than I hoped, but they seem to be making the right moves. My key problem with BLT is that I picked it for the 2017 stock picking comp! Going to have to wait longer I suspect.

[simla]

Let's hope we are both right. We may also be well positioned for a possible cap raise!!

Yes, it has been difficult watching the company spend about $14m on/during the new plan (expenses + capital expenses 2016 + 2017 as above chart) without any assurances that they do expect to recoup that in future by creating additional future profits of $14m (or is it $20m, before tax ~= $14m after tax). Obviously you could argue about how much of that counts, maybe even less than half that, but the principle remains the same. And now a capital raising that will require even more future profits to recoup. Yet the company is making no mention of how much profit it is in fact hoping to generate in future. I'm sure they have done the maths themselves, but it would be nice to be aware of it.