QEX - QEX Logistics

[winner69]

Sort if says QEX could treble in price and still be cheap

https://www.nxt.co.nz/files/attachments/274477.pdf

[percy]

Director Danny Chan is experienced.
Not sure whether Bill's brother Conor English will last, as he may take over Bill's seat.
I am still wary of Chinese businesses and businessmen.

[winner69]

Good start for QEX on the bourse with share price ending at 39 cents

[JoeGrogan]

hmmm i wonder if it listed on the ASX whether or not it would get the same hype as AU8. It seems all you need in your business strategy are the words "daigou", and everyone goes nuts over there.

[kiora]

I wouldn't touch anything C.E . is envolved in with a barge pole.

[Brain]

Ended the day at 68c . Sellers seem thin on the ground.

[whatsup]

Doubled from listing in a month, well done all holders.

[nzsharetrade]

is there any holder using ASB? I get this error 'We are unable to accept an order for this stock.' at the time.

[Brain]

is there any holder using ASB? I get this error 'We are unable to accept an order for this stock.' at the time.
I am with ANZ. With ANZ To trade NXT stocks you have to sign an NXT acceptance form. I am sure it will be the same with ASB so best for you to contact them.

[nzsharetrade]

Thanks Guys

[Brain]

These guys seem to be growing quickly. 15M$ turnover for first quarter seems good to me.

Big green arrow.

Thanks for starting this thread Winner. You brought it to my attention and hopefully a few other sharetraders as well.

[whatsup]

Nice little earner $1.25 today !

[Brain]

2.5m$ raised at $1.15 per share. Issue over subscribed.

All good

[waterboy]

Wow anz is showing no sellers at all, don't think I have ever seen that before. even if you were prepared to pay more no one is selling.

[Brain]

Upgraded sales turnover target of 60m$ for FYE 2019. This is nearly twice the 2018 result.

[whatsup]

Should be a very interesting meeting tomorrow for this "silent slogger " N Z X's best performer this year especially after the KOM's point to a accelerating business of dairy into China.
Im picking this time next year we shall see $2.50 !!

[whatsup]

Reasonable buying interest after yesterdays upbeat AGM with plenty of avenues for further expansion in the coming year, all good imo.

[Snow Leopard]

QEX going to play with the grown-ups:

https://www.nxt.co.nz/companies/QEX/announcements/324214

[whatsup]

Up 7.7% so far today ATH now and inching to my $2.50 target by this time next year .

[whatsup]

ATH now $1.50 getting ready for migration from the AX to NZX main board on 11 th Oct where more investment funds will buy imo.

[Pricey]

Surprised this hasn't taken a hit with SML and ATM ...

[Snow Leopard]

Big day tomorrow - will there be a coming of age party?

[Brain]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/329961/294219.pdf

Danone would be a customer worth having.

[Lewylewylewy]

If you look these up on the nz companies register, then look up the directors on the same register, you get a spiderweb of company registrations with similar names. Dyor because it was a while ago when i did this so i might have got confused or forgot something in the meantime, but it looked off last time i looked into this company. I wonder if there's trade runoff happening.

I have similar concerns to Percys page 1 comment.

[Brain]

I do not have that prejudice against Chinese businessmen. Usually the Chinese are very competent unlike a number of European businessmen eg the boards and management of NZ listed companies CBL,Intueri,Veritas , Snack, Fletchers etc etc.

[Lewylewylewy]

It's not a competency thing. Its a cultural thing.

[kiora]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/329961/294219.pdf

Danone would be a customer worth having.

What sort of partnership agreement?Like FONT had?

[Brain]

Well I guess only the board and management would know that at this point. On the basis that the QEX is showing strong growth in revenue I would think QEX is very well run company. My view is that these guys are not bunnies so that Danone partnership will be positive for QEX.

[whatsup]

Entitled stale pale male suits sitting around the boardroom table. Old boy network; a cultural thing.
And your right, competency not always required.

If all of you posters had attended the company presentations, agms etc you would realise just how this company is run, I cannot complain as they are making big steps slowly, building blocks being put in place for solid long term future, indeed it has come a long way in a very short time, wasn't too long ago that it was in the founders basement, ( just like Systema ) !!

[kiora]

The charts looking sick,why?

[Ggcc]

The charts looking sick,why?
No news. Until people can make a better judgement on how the business is going the share will be a traders game I think.

[beetills]

Bit of an update today with a nice jump in sp.
Disc..Purchased a few yesterday,hoping the sp continues to rise.

[whatsup]

Lindsay Investment Trust increases its share holding from 5.31 % to 7.22% on recent weakness following on from its very successful foray into Methven Ltd , what do they see that others do not who are selling atm !

[sb9]

Lindsay Investment Trust increases its share holding by 1.91 % to 5.33% on recent weakness following on from its very successful foray into Methven Ltd , what do they see that others do not who are selling atm !

Its actually gone upto 7.22% from previous 5.31%.

[whatsup]

Herd buying off the Lindsay ann !!

[sb9]

Herd buying off the Lindsay ann !!

Yes, looks like that. He's got bit of coin atm that Lindsay man.

Dipped in my toes on this one few weeks back.

[Timesurfer]

Dipped in my toes on this one few weeks back.

Yep me too recently. Surely you can't go far wrong at current prices.
I am trusting that the names connected with this one can deliver. Their strategy looks good to me.

[silverblizzard888]

Terribly undervalued company. One only needs to look at the latest presentation to see the potential of these guys. Massive growth in revenue and that’s just on milk powder. I have a $3.90 valuation on these guys, but that’s just me. Seems to run under the radar for some reason.

[whatsup]

Terribly undervalued company. One only needs to look at the latest presentation to see the potential of these guys. Massive growth in revenue and that’s just on milk powder. I have a $3.90 valuation on these guys, but that’s just me. Seems to run under the radar for some reason.

Nothing wrong with the company just needs runs under its belt, very hard for a small newly listed company to get instant 5 star rating unless it has massive a truly house hold name, backing and solid financials , patience needed with QEX but the future looks good here, making big steps quietly imo.

[silverblizzard888]

What’s not to like about the company:

Strong revenue growth
Cornerstone shareholder in Lindsay
In a growing market with huge demand
Excellent management
Asb and Forsyth Barr showing them off
Big name customers
High reward to risk ratio
Constantly improving efficiency and scale

[whatsup]

Nice little pop on more agency tie ups. That man Lyndsay knows his stuff.

[beetills]

When will the good news stop.I can't handle it.
Disgruntled RBC shareholder.

[minimoke]

I apologise to holders. You can now expect a 10% drop in SP as I have today entered this register. Wanted to park my SML profits somewhere with high risk and potential high reward. I like QEX's story to date (still gives me exposure I want to China and agriculture) and they seem to be getting runs on the board. Inevitably when I buy a SP drops. Sorry.

[Timesurfer]

I apologise to holders. You can now expect a 10% drop in SP as I have today entered this register. Wanted to park my SML profits somewhere with high risk and potential high reward. I like QEX's story to date (still gives me exposure I want to China and agriculture) and they seem to be getting runs on the board. Inevitably when I buy a SP drops. Sorry.

No problem. I was caught out by the recent spike - I hadn’t finished buying. Of course now that you are investing your millions, I may still not get the price I was hoping for!

[sb9]

I apologise to holders. You can now expect a 10% drop in SP as I have today entered this register. Wanted to park my SML profits somewhere with high risk and potential high reward. I like QEX's story to date (still gives me exposure I want to China and agriculture) and they seem to be getting runs on the board. Inevitably when I buy a SP drops. Sorry.

Does seem to go in that direction for now.

[SilverBack]

What’s not to like about the company:

Strong revenue growth
Cornerstone shareholder in Lindsay
In a growing market with huge demand
Excellent management
Asb and Forsyth Barr showing them off
Big name customers
High reward to risk ratio
Constantly improving efficiency and scale

QEX is high growth, low profit company. For companies like this I like to track the Market Cap. to Gross Margin Revenue ratio as a proxy for PE (which is not much help for profitless stocks). I use an estimate for forward revenue based either on company guidance or my assessment if guidance not given. On today's SP at 110c, I find that QEX has a ratio of 6.9. That compares with Xero on 32.9, Pushpay on 10.1 and Plexure on 8.5. I don't see why QEX cannot match PPH's valuation, which case the SP would be 162c. Following company guidance at the end of February, we can expect NPAT to double, producing a PE of 23.0 on today's SP, while at 162c, the PE becomes 33.9.

[sb9]

QEX is high growth, low profit company. For companies like this I like to track the Market Cap. to Gross Margin Revenue ratio as a proxy for PE (which is not much help for profitless stocks). I use an estimate for forward revenue based either on company guidance or my assessment if guidance not given. On today's SP at 110c, I find that QEX has a ratio of 6.9. That compares with Xero on 32.9, Pushpay on 10.1 and Plexure on 8.5. I don't see why QEX cannot match PPH's valuation, which case the SP would be 162c. Following company guidance at the end of February, we can expect NPAT to double, producing a PE of 23.0 on today's SP, while at 162c, the PE becomes 33.9.

Nice correlation there. Seem to be going well, few up days followed by accumulation at higher highs.

[Timesurfer]

Well placed I'd say http://www.sharechat.co.nz/article/0f2caa93/nz-monthly-exports-hit-record-in-march-as-chinese-buying-revives.html


“Exports to China were the leading contributor to increases in several primary sector commodities including dairy products, beef, lamb, and forestry products,” international statistics manager Tehseen Islam said. Exports to China were up 52 percent at $1.5 billion in March.

[minimoke]

Look who is a Director of QEX and a Director of GMP Pharmaceuticals. Look who is in a whole world of strife with GMP.

Give up? SML

[winner69]

Look who is a Director of QEX and a Director of GMP Pharmaceuticals. Look who is in a whole world of strife with GMP.

Give up? SML

Conor is also a Director of the cannabis outfit

[minimoke]

Conor is also a Director of the cannabis outfitI'm more interested in him being able to offer a "Practical solution" to SML

[silverblizzard888]

SML's introduction to QEX has just begun

[Timesurfer]

Surely they can't snatch failure out of - Annual exports to China jumped 22 percent in April to top $15 billion for the first time, amid growing demand for beef, lamb, logs and dairy products.

[silverblizzard888]

Surely they can't snatch failure out of - Annual exports to China jumped 22 percent in April to top $15 billion for the first time, amid growing demand for beef, lamb, logs and dairy products.

So far they have been pretty successful growing revenue from $10 million to $30 million, and now foretasted to hit $60 million, if they keep this up they could possibly hit $100 million next year.

Annual report due next week, I'm expecting $61 million revenue, $3.5 million net profit.

[minimoke]

how much would a 10 year agreement with synlait be worth. Seems and elegant, practical solution to SML's woes.

[silverblizzard888]

how much would a 10 year agreement with synlait be worth. Seems and elegant, practical solution to SML's woes.

It'd be a great partnership, you have Synlait who makes the product and QEX that transports it all the way to China, they'd just have to sign up a distribution partner in China then they are all good to go. It would mean greater margins for Synlait and QEX would be doing some pretty decent volume too. Such a deal would benefit Synlait more than it would for QEX since they are already signing up big companies like Danone ($83 Billion NZD company), Swisse (Number 1 vitamin and supplement brand in Australia) and Open Country Dairy (2nd largest premium milk powder exporter globally), these contracts have only just started and we won't see the impact till FY 20.

[minimoke]

Preliminary unaudited results out

• Revenue increased to $59.4 million, an 89% (or $28 million) increase on FY18
• Gross profit grew 48% to $7.5 million, up from $5.07 million in FY18
• Net profit after tax increased 61% to $1.9 million

• Placement of New Shares raised $2.5 million
• Migration from the NXT market to the main NZX board
• Service agreement signed with SF Express Australia
• Three-year contract signed for free trade zone and bonded warehouse in Shanghai
• Ranked #4 in Deloitte Fast 50 Master of Growth awards • Significant new distribution agreements signed
• Registration with the International Air Transport Association

[Timesurfer]

And the SP dials back ....tough crowd to please?
However, I am well positioned to ride this horse when it gathers some steam

[whatsup]

Preliminary unaudited results out

• Revenue increased to $59.4 million, an 89% (or $28 million) increase on FY18
• Gross profit grew 48% to $7.5 million, up from $5.07 million in FY18
• Net profit after tax increased 61% to $1.9 million

• Placement of New Shares raised $2.5 million
• Migration from the NXT market to the main NZX board
• Service agreement signed with SF Express Australia
• Three-year contract signed for free trade zone and bonded warehouse in Shanghai
• Ranked #4 in Deloitte Fast 50 Master of Growth awards • Significant new distribution agreements signed
• Registration with the International Air Transport Association

I thought that price sensitive anns were released before the trading started each day ?

[winner69]

I thought that price sensitive anns were released before the trading started each day ?

You can release them at any time of the day ...price sensitive or not.

Good report isn’t it.

[silverblizzard888]

Results as expected by most of the market, so not much to read into with the results, they are performing well. Should build more confidence in the market that these guys are performing well especially since they are still quite new. With more results and consistency for the market this stock should see a strong re-rate sometime in the future. Hopefully don't have to wait too long, but important thing is the companies putting runs on the board and growing shareholder value, so its a good time to continue building a good position and enjoy the ride.

[sb9]

Results as expected by most of the market, so not much to read into with the results, they are performing well. Should build more confidence in the market that these guys are performing well especially since they are still quite new. With more results and consistency for the market this stock should see a strong re-rate sometime in the future. Hopefully don't have to wait too long, but important thing is the companies putting runs on the board and growing shareholder value, so its a good time to continue building a good position and enjoy the ride.

Agree completely, they seem to be trucking along quite nicely. No nasty surprises and very cautious with their outlook, always a good sign not try get too far ahead of themselves.

[SilverBack]

Sitting on a PE of 31.8 (for basic EPS of 3.65c) may seem high but with revenue growing by 89% and NPAT by 61% it is worth it. Even with the lower gross margin of 12.6% resulting from milk powder sales QEX still comes out cheap compared to other high growth companies on the NZX. Still cashflow negative but debt level is low, as is cash and equivalents. There seems to be a high level of trade receivables at the balance date without any comment on this in the report.

[Aarrgghh]

Anyone got any comment on why the share price has taken a massive dive after the annual result came out? I thought it was pretty good result too, but it's down nearly 15%? If it's worry regarding milk into China wouldn't A2M be effected more? Looking at the depth numbers it seems there is more to come also. Could this be someone on the inside bailing out?

[kiora]

What is their MOAT?The majority of sales are in NZ
GP% actually went down,most increase in TO in low margin products,need more capital raise to support future growth?
What is their advantage?

[Aarrgghh]

They ship and distribute NZ products into China.

Someone else might be able to clarify the details, but I believe the NZ customers are websites and daigou (https://en.wikipedia.org/wiki/Daigou) who sell products to China - they pay QEX who then buys, packages, ships the product to China (clearing customs) and then distributes it from there. Predominantly infant formula and health suplements I assume/believe.

Their magic sauce is the ability to do all of those things, rather than being another Fedex or DHL, and a "knack" for getting through the customs process.

[minimoke]

They ship and distribute NZ products into China.

Someone else might be able to clarify the details, but I believe the NZ customers are websites and daigou (https://en.wikipedia.org/wiki/Daigou) who sell products to China - they pay QEX who then buys, packages, ships the product to China (clearing customs) and then distributes it from there. Predominantly infant formula and health suplements I assume/believe.

Their magic sauce is the ability to do all of those things, rather than being another Fedex or DHL, and a "knack" for getting through the customs process.Pretty much it. Though I would add it is end-to-end service. So they can pick up product here in NZ (Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Queenstown), fly daily to China, process through what is thought to be the only Australasiian bonded warehouse in Shanghai and delivery to the end user in China.

Percent downturn in SP may be market reaction to Chinas recent announcement where they want to see more domestic IF produced, no doubt at the expense of foreign manufactures / distributors. Also a bit of nervousness around trade wars.

Their moat is their established footprint in china - its not an easy thing to set up end-to-end freight into China.

[whatsup]

Personally I don't see any issues with QEX, its a growing company below the radar to most investors, look where its come from at launch it was a .25 share issued at .40 now $1.00 on good results so far and good growth prospects .

[Brain]

Anyone got any comment on why the share price has taken a massive dive after the annual result came out? I thought it was pretty good result too, but it's down nearly 15%? If it's worry regarding milk into China wouldn't A2M be effected more? Looking at the depth numbers it seems there is more to come also. Could this be someone on the inside bailing out?

Minimoke above has given a really good summary so I won’t repeat that. With regard to the variation in price that’s what all shares do and particularly those that are high growth and thinly traded. If you invest in the sharemarket it just goes with the territory.

[waikare]

I apologise to holders. You can now expect a 10% drop in SP as I have today entered this register. Wanted to park my SML profits somewhere with high risk and potential high reward. I like QEX's story to date (still gives me exposure I want to China and agriculture) and they seem to be getting runs on the board. Inevitably when I buy a SP drops. Sorry.

Perhaps the above post 27/03/19 by Minimoke, may explain the recent drop in share price, having a little spend up.

[minimoke]

Perhaps the above post 27/03/19 by Minimoke, may explain the recent drop in share price, having a little spend up.It always seems to be the way - and I do at least flag the warning to current holders.

[777]

It always seems to be the way - and I do at least flag the warning to current holders.

Would you please go out and buy some more.

[minimoke]

Would you please go out and buy some more.I've got cash in my trading account and thinking about it. My double down approach worked with ATM and SML.

[sb9]

For such a tightly held register, surprised to see so much selling pressure.

[Timesurfer]

I've got cash in my trading account and thinking about it. My double down approach worked with ATM and SML.
I would like a heads up if you are planning to buy in again and drop the price another 10% so I can free up some cash to scoop up some more!

[minimoke]

I would like a heads up if you are planning to buy in again and drop the price another 10% so I can free up some cash to scoop up some more!Will do. But I am already quite well positioned for when they go above $1.50

[silverblizzard888]

The company runs under the radar, its no surprise as most people don't get to see its day to day operations.
Share price heading down is usually the impatient selling down and taking the profits they already have.
I've been in enough stocks to know this is normal, best to be patient and one day it will be recognized (hopefully).
It happened with Pushpay, I'd ask stock brokers if they know pushpay while it was a 500 million company and no one knew, so wouldn't be surprised if it takes this one a while longer.
Plexure also took its time to be recognised, but it finally happened too.

[Timesurfer]

Given most of my portfolio is currently bleeding red it doesn’t seem too out of place. I figure if everyone else is selling it must be a good time to buy so I have dropped another bundle into my portfolio this week. Hopefully, ww3 doesn’t break out over the weekend and next week will see some enthusiasm return to the market!

[silverblizzard888]

Some more good news for QEX with dairy exports up again!
With everything heading in the right direction its only a matter of time.

http://www.sharechat.co.nz/article/6e784e7e/dairy-sales-push-may-exports-to-record-high.html

[beetills]

I see that a new link from China/NZ/Sth America is been muted using nz as a inbetween port.
Any benifits to QEX with this?

[SilverBack]

I am bemused by the market reaction to the release of the Annual Report. The financials are all the same as previously announced but the SP drops by nearly 6%. The only item that caught my eye was that they have backed off in Australia and that their revenue in Australia actually declined. I cannot remember if that was previously indicated or not.
Current initiatives to increase margin with other products following big increase in turnover with low margin milk powders is good.
It was interesting seeing the staff photo. Apart from Connor English, all are Chinese apart from one other. No doubt Mandarin is an essential requirement with this company. Staff numbers at 32 are lower than I would have thought for a logistics company with this amount of revenue. Some automation is applied and I guess a lot of the handling is done by other parties.

[Timesurfer]

Might have to buy some more. Sooner or later something will have to happen in this space surely?

[Lease]

Be careful of the big picture in China: consumption is down, manufacture is weak, factories lay off staff. Now it's time to be cautious if a company expose too much towards China.

[whatsup]

Be careful of the big picture in China: consumption is down, manufacture is weak, factories lay off staff. Now it's time to be cautious if a company expose too much towards China.

There is still good business to be done there and here, flows both ways.

[Timesurfer]

Someone wants out?

[sb9]

Someone wants out?

Definitely looks that way, big volumes on offer to sell

[silverblizzard888]

Yeah someone doesn't want to wait. In times like these just focus on the fundamentals!

[Chanchay]

Yeah someone doesn't want to wait. In times like these just focus on the fundamentals!

I hope your right silver. I can't help but have the feeling someone knows something we dont. Thinking about buying more but already quite heavily in the red :/

[silverblizzard888]

I hope your right silver. I can't help but have the feeling someone knows something we dont. Thinking about buying more but already quite heavily in the red :/

It's possibly someone might know something, but on the present we can only assume the company has been upfront with us and that this stock is a very illiquid one so anyone wanting to sell will naturally lower the price. Its never comfortable waiting while the price drops, but this is a natural stock market tendency with growth stocks, they tend to fly up and down like a roller coaster and for the investors investing in it they need a good stomach for the ride. Having been an investor in Plexure and Pushpay, they were stocks where you'd feel extremely uncomfortable holding into the red (of course they aren't now), I always questioned myself, but I based my beliefs on fundamentals and if those have not changed then the company is believed to be building shareholder value consistently and waiting to be realised eventually.

As long as the cornerstone shareholders still believe in the company then we should too.
Brendan Lindsay 7.22% - His company was built on the success of being able to export their products overseas, so if he sees something special I'm with him.
Ronnie Xue 79.52% - the CEO has all his wealth in this company, he has more interest than anyone to make this company a success. Just the speed which this company has grown at shows you the extreme work ethic that you want in a CEO for a growth company.

Next financials we will all be focused on revenue growth and whether they have been able to increase margins.

[whatsup]

Someone wants out?

That comment was made at a time when less that 200,000 shares were offered for sale out of a total 52 mil , 90 % of which are is believers hands.

[Ggcc]

Someone wants out?
Must be because minimoke invested he did warn us

[Timesurfer]

It's possibly someone might know something, but on the present we can only assume the company has been upfront with us and that this stock is a very illiquid one so anyone wanting to sell will naturally lower the price. Its never comfortable waiting while the price drops, but this is a natural stock market tendency with growth stocks, they tend to fly up and down like a roller coaster and for the investors investing in it they need a good stomach for the ride. Having been an investor in Plexure and Pushpay, they were stocks where you'd feel extremely uncomfortable holding into the red (of course they aren't now), I always questioned myself, but I based my beliefs on fundamentals and if those have not changed then the company is believed to be building shareholder value consistently and waiting to be realised eventually.

As long as the cornerstone shareholders still believe in the company then we should too.
Brendan Lindsay 7.22% - His company was built on the success of being able to export their products overseas, so if he sees something special I'm with him.
Ronnie Xue 79.52% - the CEO has all his wealth in this company, he has more interest than anyone to make this company a success. Just the speed which this company has grown at shows you the extreme work ethic that you want in a CEO for a growth company.

Next financials we will all be focused on revenue growth and whether they have been able to increase margins.

I haven’t sold mine, although I am now under water. Tempted to buy more but just worried about how much capital I have tied up on a stagnant stock. Still a believer in the end game, but also wanting to retire sooner than later. Trying to pick the fastest horse is always a problem!

[Timesurfer]

Must be because minimoke invested he did warn us
Then maybe I should buy more after all - his shares always go up after they go down!

[ziptie]

Down she goes :-/ this is really starting to make me grit my teeth...

Bought a little more yesterday... much to my dismay today.

also (probably nit picking) but the CFO Resigned a little while back now, but the website hasn't been updated. (hopefully they are just signing deals and making plenty of money)

Disc: Holding Tight

[Timesurfer]

Possibly a reaction to Fonterra's woes.
Relatively light trading driving the price down on the back of no news.
Throw them in the drawer and hope that in a couple of years from now I haven't lost my shirt.

[kiora]

Down she goes :-/ this is really starting to make me grit my teeth...

Bought a little more yesterday... much to my dismay today.

also (probably nit picking) but the CFO Resigned a little while back now, but the website hasn't been updated. (hopefully they are just signing deals and making plenty of money)

Disc: Holding Tight

Gritting your teeth is not a strategy I would employ.It often ends up with no teeth left in my experience that I have learned the hard way
:scared:

[Ace]

I wouldn't worry too much yet, the same thing happened at the lack of news last time until a trading update. NZ export of milk powder to China is up roughly 67% on the same half of the year compared to last year so QEX should hopefully see a lift in that, we have our agreements with Danone and Swisse which will materialize this FY. We have larger warehousing and from the last report a lot of stock, which according to Ronnie gets sold within 2-3 weeks on average. Last year this time there was a trading update, or slightly early so I assume lack of news would have driven the price down - no matter the reason it's just the market chattering and the company will continue doing what it does best unless we're told otherwise so no need to grit your teeth together!

[Ggcc]

Well the price on this one is at a very low entry point. As I asked some time back with Kathmandu before it went up in price..... When is the good time to buy into this share? I expect it to rise now that I have considered purchasing.

[Timesurfer]

Well the price on this one is at a very low entry point. As I asked some time back with Kathmandu before it went up in price..... When is the good time to buy into this share? I expect it to rise now that I have considered purchasing.

I hope you are right. I could use some good news before my portfolio bleeds out altogether.

[silverblizzard888]

If nothing special to announce then it will be the interim financials in a few months

[Chanchay]

Significant downgrade of outlook on NZX. It's clear there have been insiders selling knowing this info since the annual report.

No depth to sell. I will be selling as soon as I can and not touch anything from the backers of this company.

[Ggcc]

Significant downgrade of outlook on NZX. It's clear there have been insiders selling knowing this info since the annual report.

No depth to sell. I will be selling as soon as I can and not touch anything from the backers of this company.
I don't see all the doom and gloom. Sure they have needed to discount items to compete, but after that statement they mentioned.

Offsetting the above, QEX has started selling milk powder to Australian diagou and is seeing strong growth in revenues in this market.

I do like their longterm future, so I have invested a small amount into this share. This discounting happened with A2 as well when they were changing packaging and everyone was in a panic.

I look forward to seeing the QEX results after 12 months trading.

[pg0220]

I don't see all the doom and gloom. Sure they have needed to discount items to compete, but after that statement they mentioned.

Offsetting the above, QEX has started selling milk powder to Australian diagou and is seeing strong growth in revenues in this market.

I do like their longterm future, so I have invested a small amount into this share. This discounting happened with A2 as well when they were changing packaging and everyone was in a panic.

I look forward to seeing the QEX results after 12 months trading.

The first half's revenue is going to be the same as the same period in the last year, so no downgrade in revenue. Starting to see an increase in both volumes and margins for infant formula sales from August so this should help the revenue increase in the second half.

It would be interesting to see progress in Australian market expansion. If goes well, this would be a game changer for them.

[Ace]

I don't see the doom and gloom either, I know there was a rebranding with aptamil and nutricia around April, revenue expected to be the same as last year so they're not going backwards and we know they have solid foundations so that last year wasn't a stellar year for them and moreso a 'norm' dare I say. As you can consider this business running in parallel to ecommerce in someways due to working heavily with daigou, it's fair to look at some metrics which view it as such. From memory when I last checked last month web traffic to Qexpress website has increased by around 100-200% in a 6month period checking on SEMRUSH and it's ranked in the top 500k-600k websites in traffic moving up significantly since last year, take from that what you will (it moved up around 200-300k placed in the last 90 days when I last checked, down about 90k places now so up around 150k~). Traffic is indicative of customer and client volumes as they use the online portal to check tracking codes and book shipments. So despite the poor macro conditions QEX is holding it's ground with significantly higher web traffic volumes, projected growth in the second half now that old discounted stock has been sold off with only margins and a competitive landscape holding us back for now. A bit of speculation on my part, should margins return with the higher level of volume we should see a nice little bump back up. A little hiccup to this growth story that's all.

[forest]

Significant downgrade of outlook on NZX. It's clear there have been insiders selling knowing this info since the annual report.

No depth to sell. I will be selling as soon as I can and not touch anything from the backers of this company.

Mm, another way of looking at this is if 1st half of 2020 revenue is same as 1st half of 2019 as forcast than we have a 20% increase in revenue this halve compared with second half of 2019.
The first half of 2019 was by far QEX best halve of revenue.
Yes a pity about margins but company has explained this.

[Aarrgghh]

1. There has been some obvious insider trading going on in the past few months. It's not the first time QEX share price has fallen before a negative announcement.

2. That announcement has intentionally written vaguely. It only mentions revenues with a passing mention of volume. If your volumes are up then your operating costs are up. If your operating costs are up and your revenues are flat then your profit is down. The company expects a decrease in profit but they're not saying how much.

[Ace]

1. There has been some obvious insider trading going on in the past few months. It's not the first time QEX share price has fallen before a negative announcement.

2. That announcement has intentionally written vaguely. It only mentions revenues with a passing mention of volume. If your volumes are up then your operating costs are up. If your operating costs are up and your revenues are flat then your profit is down. The company expects a decrease in profit but they're not saying how much.

Yeah it appears so, although the announcement that followed that drop in price was quite a positive announcement? I don't recall a negative announcement.
It would make sense that operating costs are up with higher volumes, although that being said as per the announcement the reduction in margins for a product was one-off in April and May and from August margins are improved with growing momentum. Keep in mind last year we had one off listing costs that noticeably reduced profit, the SP was a lot higher at that time - we've seen a drop from 1.5 to 1.2 and a gradual decline to 85, and now 20% today off the announcement that we will see similar revenue numbers as the same period last year, with a stronger second half. That's a huge discount to what people were prepared to pay for the same company not too long ago. Granted, we expect to see growth and the company is priced as such, the question is whether this is a temporary lull as compared to a continued decline in the company. I prefer and expect the former based on what was announced.

[Drew95]

YIKES!! Down to 60 cents. I bought in at $1.12 at the end of May. I decided to sell in June at $1.05. It seems I dodged a bullet there.

[kiora]

CFO gone
Raised $2.5m by issuing new shares at $1.15/share.Who to?
Operating Cash flow -$3.5m

[Ace]

CFO gone
Raised $2.5m by issuing new shares at $1.15/share.Who to?
Operating Cash flow -$3.5m

Around ~1m to Lindsay Investment trust, SPP taken up by wholesale and retail investors and closed the same day AFAIK. $270k+ volumes through today, with $170k on two buyers, made up the 10% loss from yesterday.

[sb9]

Around ~1m to Lindsay Investment trust, SPP taken up by wholesale and retail investors and closed the same day AFAIK. $270k+ volumes through today, with $170k on two buyers, made up the 10% loss from yesterday.

Could be that Lindsay adding more on current weakness, he's a smart operator.

[Ace]

Could be that Lindsay adding more on current weakness, he's a smart operator.

In addition, this June at the Deloitte fast 50 opening Ronnie was invited to speak and he stated that they would be intending to participate in this years fast 50. “Ronnie, Toby and Luke also hinted at their businesses returning as contenders in the 2019 Deloitte Fast 50, with Ronnie saying that ‘the Fast 50 programme is just like a reward for us at the end of a year – and it helps us set a goal for next year’.”

[Everwood]

YIKES!! Down to 60 cents. I bought in at $1.12 at the end of May. I decided to sell in June at $1.05. It seems I dodged a bullet there.

I have an average price of 93 cents, it's only a speculative investment. I still think this stock has the potential of being a good investment.

[sb9]

Was anyone from here at the ASM y'day, if so pls update with your views.

[ziptie]

Was anyone from here at the ASM y'day, if so pls update with your views.

Would love to know also.

[forest]

Good meeting sb9 and ziptie. Management and directors were very open answering all questions and there were plenty.
I guess you would have red the report of the AGM. What in particular would you like to know?

[sb9]

Good meeting sb9 and ziptie. Management and directors were very open answering all questions and there were plenty.
I guess you would have red the report of the AGM. What in particular would you like to know?

Thanks for that forest.

Just keen to ascertain what the underlying theme from BOD and management at ASM. Did read their presentation and wanted to know bit more of what actually discussed at the meeting.

[forest]

Thanks for that forest.

Just keen to ascertain what the underlying theme from BOD and management at ASM. Did read their presentation and wanted to know bit more of what actually discussed at the meeting.

A lot of questions were about the presentation and previous announcements. Shareholders were testing management to see if the company possibly had some hidden issues.
I do not think there are any.
However this is still a very young and small company playing in a very big market.
This company is working towards optimizing its business model. Some changes to that model are less successful than others.
A few other shareholders I talked to after the meeting were also satisfied with QEX big pickture progress.

[sb9]

A lot of questions were about the presentation and previous announcements. Shareholders were testing management to see if the company possibly had some hidden issues.
I do not think there are any.
However this is still a very young and small company playing in a very big market.
This company is working towards optimizing its business model. Some changes to that model are less successful than others.
A few other shareholders I talked to after the meeting were also satisfied with QEX big pickture progress.

Cool, thanks once again for your thoughts.

[Ace]

Some nice buying orders coming through. Festival of growth yesterday amongst some interesting data. Interested to see how we have gone over the last quarter later this month.

[sb9]

1H results not that great but more importantly strong start to 2H and positive outlook.

[Ace]

1H results not that great but more importantly strong start to 2H and positive outlook.

Really positive.


The quantity of milk powder product we are able to source from our New Zealand suppliers has nowtripled. The strong demand for this has been demonstrated in October, when profits for the monthwere at a similar level to the result for the entire HY2020, as well as in November to date, whenmonthly sales are likely to be the highest in QEX’s history.

So either 1) 24M in October alone in milk powder sales to generate said profit OR improved margins, or 2) 27M in line with total revenue of HY2020 for the single month alone, AND November till today, (still a few days to go) the MONTHLY sales are highest in QEX history (so higher than October so another 24-27M in revenue, and most likely a lot higher given the emphasis of highest revenue in QEX history). Does that sound correct or am I misinterpreting this?

On top of that a lot of catalysts in the second half including storage in Sydney, continued growth of Australian business, Devondale partnership to come to fruition, triple stock from suppliers able to be stocked, and demand exceeding expectations. What's not to like when from my inference (if correct) practically FY2019 revenue to be met by two months alone this second half and with plenty more time to go at PEAK season and growing! With a share price in FY2019 at similar revenues sitting at a peak of $1.5 and being now valued at $0.8 per share with still 4 months to go during PEAK season it seems pretty good, dare I say it, 'value'.

[forest]

https://figure.nz/chart/jPhn59ZSuhXHZh7v-O4pBTZ5MOLoajoBw

Looking at the above chart and forecast of infant formula exports for the next few years.

This is the main product QEX is exporting so as Ace said what is there not to like.

[Cadalac123]

100k shares sold off today.. insider sell off? who knows. got burnt hard on this stock
was going down for no reason and then get horrible news. I agree the latest announcement was really
good projection wise but I almost never want to touch this stock ever again after losing 50% (admittedly my first ever stock lol)

[Timesurfer]

100k shares sold off today.. insider sell off? who knows. got burnt hard on this stock
was going down for no reason and then get horrible news. I agree the latest announcement was really
good projection wise but I almost never want to touch this stock ever again after losing 50% (admittedly my first ever stock lol)

Yep, I took a significant hit on this one last year.
Looked promising on paper, but then with all the global politics and state of Fonterra I decided it better to park my money in a stock with upwardly mobile prospects. It may well bounce back in the near future but I suspect there are a few others waiting to cut their losses on the way up.

[Cadalac123]

Why are there reports always so shady. Impact of the coronovirus won't be known till May wtf? So the release date of a report is going to be when they can realise the impact of the issue, yeah sure..

[Brain]

From my perspective I appreciate the update. Good shareholder communication . Feb forecast met in the the first 10 days is exceptionally good news. I am a happy holder.

[Ggcc]

I only have a small amount of shares in this company, but am eager to get more if I can after the results announcement. I am now one who wants to wait for information before investing into new listings. If it all goes well I can see this being a huge share in a few years time

[Cadalac123]

The main issue in the previous half was said to be attributable to the parcels aspect of the company .

In this update we are graced with one mention of demand increasing and no financial update at all directly pertaining to the degree of improvement or anything.

[traineeinvestor]

I took a look at QEX and came away with mixed views.

Positives:

Potential growth in NZ/PRC trade
Management/founder own about 75% of the shares
Relationship with SF (SF is one of China's largest logistics companies and over the last few years I've seen them become the courier company of choice in Hong Kong)

Negatives:

Illiquid
Negative operating earnings in FY2019 (although positive in H12020)
Large jump in receivables over the last six months – query how big a lift in provisions will be needed
Large jump in borrowings over the last six months
Some disruption to business due to Covid-19, tempered by the possibility of a reboot of the China trade
No dividend to date (and I would not expect one in FY2020)

At the moment, I see less risk in FRE (held) or MFT than QEX in spite of the potential.

[kiora]

I second all of those TE

[Ggcc]

I would think that eventually we will see a capital raise happening. Not because of them needing it to survive, but to balance their books and opportunities with the Chinese market they may see.

[Food4Thought]

I would think that eventually we will see a capital raise happening. Not because of them needing it to survive, but to balance their books and opportunities with the Chinese market they may see.

See this as a positive Ggcc?

This one is kind of like ATM... moves up when others are struggling / sinking.

[Ggcc]

See this as a positive Ggcc?

This one is kind of like ATM... moves up when others are struggling / sinking.
I do and have finances ready for it, if the investment looks good.

[Food4Thought]

I do and have finances ready for it, if the investment looks good.

Interesting,

What would your estimate for capital raising cost per share?

[nztx]

I would think that eventually we will see a capital raise happening. Not because of them needing it to survive, but to balance their books and opportunities with the Chinese market they may see.

Have a similar impression here Ggcc

Past Reports hinted at activities possibly being constrained by available working capital from my reading

QEX could probably do better with a less tightly held share register / more spread for potential Cap Raises

The Big Funds would probably take more notice as well..

[sb9]

Looks set to crack the AUS market by the appointing MD for that market. Also, looks like COVID situation didn't really hurt them that badly trading wise.

[Cadalac123]

Expanding now seems like the company is in decent shape. What I always question is whether they know what they are doing. Wonder how likely it is they'll try expanding, get crushed by margin pressure like they did in the first half... Not clear how likely the successful in Australia will be, but i'm probably going to wait for proof of concept before ever relying on this company again.

[nztx]

Expanding now seems like the company is in decent shape. What I always question is whether they know what they are doing. Wonder how likely it is they'll try expanding, get crushed by margin pressure like they did in the first half... Not clear how likely the successful in Australia will be, but i'm probably going to wait for proof of concept before ever relying on this company again.

Am I wrong over-simplifying what is likely the possiblyeQEX mode operandi -- pick up bulk stock lots in NZ/Oz & sell to their Chinese wholesale & retail buyers on Co's List - producing Company's margin ?

Who knows - some of their vendors may be quite happy to finance the job too .. ?

[Ggcc]

https://www.nzx.com/announcements/352507

[Sideshow Bob]

https://www.nzx.com/announcements/352507

60c is a decent discount to the current price (84c), but has been under 60c in the last month.....

[Ggcc]

60c is a decent discount to the current price (84c), but has been under 60c in the last month.....
Will have to read the documents once they arrive. It is a company that has potential to do really well in the future.

[Cadalac123]

60c is a decent discount to the current price (84c), but has been under 60c in the last month.....

That’s a pretty big discount even when it dipped you could rarely actually buy it at or below 0.60 if I remember correctly

[whatsup]

Low of .50 recently, I think management needs to come clean, the thing that worries me is that this is not a SPP in the pure sense of that heading as one can apply for $50,000 when the maximum is usually $15,000, WHAT GIVES ?? !!

[Ace]

Low of .50 recently, I think management needs to come clean, the thing that worries me is that this is not a SPP in the pure sense of that heading as one can apply for $50,000 when the maximum is usually $15,000, WHAT GIVES ?? !!

Their last placement was completed with Lindsay Investment trust taking up 1.5M of the 2M or 2.5m allocation at $1.15, wonder why QEX is raising at 0.60 a significant 25% discount to VWAP for the last 10 days. I can't say I'm thoroughly impressed particularly because around a half year ago we were told "Despite the level of investment in growing our business during FY19, at this stage, from a cash-flowperspective, we remain sufficiently resourced for further operational growth. It is our intention that anyappropriate future acquisitions will be funded via the issuing of shares, and potentially supported byadditional borrowings if required." From the CEOs address at the last AGM.

This leads me to believe that it may be an upcoming acquisition in the pipeline as Ronnie specifically stated that we are well resourced for further operational growth and if appropriate, acquisitions funded via issuing for shares. It could be speculated that with COVID-19 and some businesses going through trying times QEX as found an opportunity that they could integrate and work well with their current business offerings. Not all doom and gloom although I'm not particularly impressed with the timing and presentation of the SPP at all. It does seem like there could be a silver lining to this although with the vague and limited information we were given for the SPP, it's not all to compelling is it?

[Ggcc]

Low of .50 recently, I think management needs to come clean, the thing that worries me is that this is not a SPP in the pure sense of that heading as one can apply for $50,000 when the maximum is usually $15,000, WHAT GIVES ?? !!
As I mentioned I want to read the documents once they arrive for that exact reason..... Not many willing to invest $50,000 with little knowledge.

It would have been great if they had a major investor on board and shareholders could have topped up the remainder at $15,000 worth in shares.

Price @ 70cents not much of a discount

[Ace]

As I mentioned I want to read the documents once they arrive for that exact reason..... Not many willing to invest $50,000 with little knowledge.

It would have been great if they had a major investor on board and shareholders could have topped up the remainder at $15,000 worth in shares.

Price @ 70cents not much of a discount

All the documents are available on the NZX site as attachments, there could be more information on the website. I find it quite interesting that they have a new website or domain specifically for this capital raising. The link is down at the moment so I wonder what would be presented on the site that would be different to all the information provided through the NZX. On the offer documents and outlines it's quite vague and pretty much highlights generic justifications for the SPP. I would like more information as well, especially if they are wanting us to invest up to 50k during a pandemic.

The website is https://www.qexshareoffer.co.nz

Documents on the NZX announcement as attachments here:
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/352507/321822.pdf
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/QEX/352507/321826.pdf

[Cadalac123]

Their last placement was completed with Lindsay Investment trust taking up 1.5M of the 2M or 2.5m allocation at $1.15, wonder why QEX is raising at 0.60 a significant 25% discount to VWAP for the last 10 days. I can't say I'm thoroughly impressed particularly because around a half year ago we were told "Despite the level of investment in growing our business during FY19, at this stage, from a cash-flowperspective, we remain sufficiently resourced for further operational growth. It is our intention that anyappropriate future acquisitions will be funded via the issuing of shares, and potentially supported byadditional borrowings if required." From the CEOs address at the last AGM.

This leads me to believe that it may be an upcoming acquisition in the pipeline as Ronnie specifically stated that we are well resourced for further operational growth and if appropriate, acquisitions funded via issuing for shares. It could be speculated that with COVID-19 and some businesses going through trying times QEX as found an opportunity that they could integrate and work well with their current business offerings. Not all doom and gloom although I'm not particularly impressed with the timing and presentation of the SPP at all. It does seem like there could be a silver lining to this although with the vague and limited information we were given for the SPP, it's not all to compelling is it?

The thing that confuses me is why are they desperate to raise at that discount when they supposedly fixed their issues and should supposedly actually be quite steady of a business.

[whatsup]

Low of .50 recently, I think management needs to come clean, the thing that worries me is that this is not a SPP in the pure sense of that heading as one can apply for $50,000 when the maximum is usually $15,000, WHAT GIVES ?? !!

I wonder what the response will be if the S P gets down to circa .62, currently buy .66 sell .68 , there definitely needs to be a explanation from the top table or this will flop big time . then what , no confidence , there are only so many chances that are given to newly listed companies, ie PEB, TRU to name a couple!!

ps how much will Danny be taking up, time for real leadership here imo!!!

[winner69]

Pays your money and keep the faith

[Ggcc]

I wonder what the response will be if the S P gets down to circa .62, currently buy .66 sell .68 , there definitely needs to be a explanation from the top table or this will flop big time . then what , no confidence , there are only so many chances that are given to newly listed companies, ie PEB, TRU to name a couple!!

ps how much will Danny be taking up, time for real leadership here imo!!!
The difference is that PEB and TRU to my knowledge make losses, where as QEX makes a profit. I agree with what you wrote and hope to get more clarity when they release their End of Year results.

[Ace]

The difference is that PEB and TRU to my knowledge make losses, where as QEX makes a profit. I agree with what you wrote and hope to get more clarity when they release their End of Year results.

The problem is end of year results are indicated to be released at the end of May with the CR ending 15th May. It would be difficult then to make a fully informed decision. The timing seems uncanny.

[sb9]

The problem is end of year results are indicated to be released at the end of May with the CR ending 15th May. It would be difficult then to make a fully informed decision. The timing seems uncanny.

Smoke and mirrors....agree that management needs to come clean and explain the clear purpose of funds being raised rather than saying for future expansions blah...blah.
And allowance of subscribing upto $50k seems bit out of line for this kind of cap raise, too many unconvincing reasons.

[whatsup]

Smoke and mirrors....agree that management needs to come clean and explain the clear purpose of funds being raised rather than saying for future expansions blah...blah.
And allowance of subscribing upto $50k seems bit out of line for this kind of cap raise, too many unconvincing reasons.

Danny imho needs to show real leadership !!

[sb9]

Danny imho needs to show real leadership !!

And more buy in/support from Lindsay as well....

[Cadalac123]

The problem is end of year results are indicated to be released at the end of May with the CR ending 15th May. It would be difficult then to make a fully informed decision. The timing seems uncanny.

I also don’t understand the rationale of this, amazing how he thought it was sensible to propose a capital raising without investors seeing the new balance sheet 😂

[nztx]

I also don’t understand the rationale of this, amazing how he thought it was sensible to propose a capital raising without investors seeing the new balance sheet ��

A fairly tight sort of Share Register with a fair portion tied up with Founders / Directors who will probably be stepping up to the plate

If it sees popularity - possibly smaller Mum & Dad investors may well get scaled back.. but $50k max structuring etc suggests they probably aren't fussed with dealing with the smaller rats & mice coming out of the woodwork on this..

Am I wrong in thinking this outfit doesn't exactly seem all that forthcoming with market announcements ?

I seem to remember looking for Financials - Interim's a while back & these didn't seem to be released ??

[Pricey]

What stood out for me after a quick flick:

- Revenue growth of 6% looks very slow - this is to March 2020, so really before the lockdown took full effect. Company doesn't have a proven track record yet as well.
- First half of 21 expected to be challenging.
- Management don't seem to speak frankly and there is a lack of detail.
- Very board use of funds: new logistic opportunities, diversifying product range, acquisition opportunities AND working capital.

[kiora]

What is their MOAT?The majority of sales are in NZ
GP% actually went down,most increase in TO in low margin products,need more capital raise to support future growth?
What is their advantage?

I am not surprised one little bit.The writing on the wall June last year posted 14-6-19

[Ace]

What are other holders thoughts on participating in the SPP now that time has passed to digest the information? The website is now up.

[whatsup]

I wonder what the response will be if the S P gets down to circa .62, currently buy .66 sell .68 , there definitely needs to be a explanation from the top table or this will flop big time . then what , no confidence , there are only so many chances that are given to newly listed companies, ie PEB, TRU to name a couple!!

ps how much will Danny be taking up, time for real leadership here imo!!!


Slowly getting closer to the SPP @.60 in there is any chance of success there surely needs to be a reset of the SPP ?

[sb9]

Slowly getting closer to the SPP @.60 in there is any chance of success there surely needs to be a reset of the SPP ?

Yes, they need to come out clean and show who in the BOD/Management or any of key investors putting their hand up to participate in the cap raise.


What are other holders thoughts on participating in the SPP now that time has passed to digest the information? The website is now up.

I'm bit reluctant at this stage to part any more money unless there is big vote of confidence from BOD/Management.

[Ggcc]

Yes, they need to come out clean and show who in the BOD/Management or any of key investors putting their hand up to participate in the cap raise.



I'm bit reluctant at this stage to part any more money unless there is big vote of confidence from BOD/Management.
No one I know who has shares in the company feels comfortable with this limited information. I will not participate unless we know what you mentioned.

[Ace]

Yes, they need to come out clean and show who in the BOD/Management or any of key investors putting their hand up to participate in the cap raise.



I'm bit reluctant at this stage to part any more money unless there is big vote of confidence from BOD/Management.

I’ve sent an email to Ronnie with some questions, and I’d suggest holders with concerns to do the same. He’s generally really good at responding from my past experience so I’ll see what he says and make my decision from there. I think it would be good for him to be aware of shareholder sentiment surrounding the SPP and the information provided.

[sb9]

I’ve sent an email to Ronnie with some questions, and I’d suggest holders with concerns to do the same. He’s generally really good at responding from my past experience so I’ll see what he says and make my decision from there. I think it would be good for him to be aware of shareholder sentiment surrounding the SPP and the information provided.

Cool, thanks doing that. Will send through my concerns too.

[Brain]

Slowly getting closer to the SPP @.60 in there is any chance of success there surely needs to be a reset of the SPP ?

logically the share price will drift down to the SPP. People will sell them at a higher price and then buy them back cheaper through the SPP if they can. I offloaded 10000 at about 68c yesterday and would have off loaded more if I could. With a capital raising of up to $4m and shareholders able to buy $50000 worth and with Ronnie owning nearly 80% of the company I do not see any issues with replacing the shares that I sold and also I will be buying some more.

If the SPP is set to a lower value then the share price will just follow.

[sb9]

logically the share price will drift down to the SPP. People will sell them at a higher price and then buy them back cheaper through the SPP if they can. I offloaded 10000 at about 68c yesterday and would have off loaded more if I could. With a capital raising of up to $4m and shareholders able to buy $50000 worth and with Ronnie owning nearly 80% of the company I do not see any issues with replacing the shares that I sold and also I will be buying some more.

If the SPP is set to a lower value then the share price will just follow.

Not necessarily, it depends on level of demand for the shares as in case of recent AIA offer. And if the issue well supported by big boys or BOD/Management, then price to tend to hold higher than SPP offer price which tend to be an endorsement for offer itself.

[Brain]

Not necessarily, it depends on level of demand for the shares as in case of recent AIA offer. And if the issue well supported by big boys or BOD/Management, then price to tend to hold higher than SPP offer price which tend to be an endorsement for offer itself.

The way that I see it is that Ronnie and the board can only apply for $50k worth of shares each The big boys will not be so interested because there is very poor liquidity in this stock. There appears to be no provision for a share placement above $50k although if there is a shortfall I guess there will be one. There should be a good supply of shares so no point in paying more than 60 cents.

[Ace]

Increase in Revenue to 63m, compared to 59.4m in 2019
EBITDA 2.8-3m compared with 3.26m in 2019 (Expected to increased by 750k due to changes in reporting standards)
Net profit 1.5-1.7M compared with 1.9M (Expected to decrease by 50k due to changes in reporting standards and after accounting for costs related to Australian expansion)

More or less the same for FY20 vs FY19, slight improvement although possible tighter margins and greater costs despite greater sales and with the costs of Australian expansion factored in. There is noted improvements for the start of FY21 compared to last year, with strong sales in March. Reversion to sales in April of the previous period doesn't sound too exciting however, as if I recall correctly it was a bit of a tough period this time last year due to tightening margins.

SB9 have you received a reply yet? I received a reply regarding my concerns re: the capital raising yesterday and might share some of the responses here later on once I'm home. Any new thoughts on the SPP from holders?

[whatsup]

Increase in Revenue to 63m, compared to 59.4m in 2019
EBITDA 2.8-3m compared with 3.26m in 2019 (Expected to increased by 750k due to changes in reporting standards)
Net profit 1.5-1.7M compared with 1.9M (Expected to decrease by 50k due to changes in reporting standards and after accounting for costs related to Australian expansion)

More or less the same for FY20 vs FY19, slight improvement although possible tighter margins and greater costs despite greater sales and with the costs of Australian expansion factored in. There is noted improvements for the start of FY21 compared to last year, with strong sales in March. Reversion to sales in April of the previous period doesn't sound too exciting however, as if I recall correctly it was a bit of a tough period this time last year due to tightening margins.

SB9 have you received a reply yet? I received a reply regarding my concerns re: the capital raising yesterday and might share some of the responses here later on once I'm home. Any new thoughts on the SPP from holders?

Obviously having such a large percentage with a few holders is a very limiting fact as they can only subscribe little money when a greater amount is needed, hense the SPP of $50 k , never heard of that happening before.

[Ace]

Obviously having such a large percentage with a few holders is a very limiting fact as they can only subscribe little money when a greater amount is needed, hense the SPP of $50 k , never heard of that happening before.

Yeah I think so too. Apparently there is around 5.9m shares held by the general public, which is around 11% of total shares, another 4.1m held by private companies. From the last annual report there was approximately 420 shareholders at the time.

[sb9]

Increase in Revenue to 63m, compared to 59.4m in 2019
EBITDA 2.8-3m compared with 3.26m in 2019 (Expected to increased by 750k due to changes in reporting standards)
Net profit 1.5-1.7M compared with 1.9M (Expected to decrease by 50k due to changes in reporting standards and after accounting for costs related to Australian expansion)

More or less the same for FY20 vs FY19, slight improvement although possible tighter margins and greater costs despite greater sales and with the costs of Australian expansion factored in. There is noted improvements for the start of FY21 compared to last year, with strong sales in March. Reversion to sales in April of the previous period doesn't sound too exciting however, as if I recall correctly it was a bit of a tough period this time last year due to tightening margins.

SB9 have you received a reply yet? I received a reply regarding my concerns re: the capital raising yesterday and might share some of the responses here later on once I'm home. Any new thoughts on the SPP from holders?

Sorry Ace, haven't managed to send my query yet, bit occupied with other stuff. Will send through soon.

[whatsup]

SPP closes tomorrow @ 5-00 who is in ?

[ziptie]

I filled out the form last night. And then cancelled at the last step, This SPP didn’t have me feeling all that inspired. Although I hope my gut is wrong

Disc: Holding

[Ggcc]

I filled out the form last night. And then cancelled at the last step, This SPP didn’t have me feeling all that inspired. Although I hope my gut is wrong

Disc: Holding
I just hope they have planned properly for this if the $3,000,000 target is not reached. I am a holder as well, but have held back as well on the SPP. I am happy to invest more money at higher prices if things go well, as I don't feel comfortable to invest more yet.

[Brain]

I’m in. I believe in the story. Always better to buy shares in an SPP than buying on market especially if the SPP is for Expansion. This is why companies list on the NZX. Readily available capital.

[sb9]

I would've partaken in SPP if there are funds permitted to...but unfortunately none to avail.

[Brain]

Clearly some interest this morning from people that do not qualify for the SPP

[Ace]

I’m in. I believe in the story. Always better to buy shares in an SPP than buying on market especially if the SPP is for Expansion. This is why companies list on the NZX. Readily available capital.

I'm in as well and taken up most of my allocation.

[SausageDog]

I am in, doubling my modest holding.

[sb9]

After managing to scrape through few funds at last minute sent of my online application form.

[ziptie]

Now we wait, and pray they keep doing good.

[Food4Thought]

Now we wait, and pray they keep doing good.

I'm in. Looked good. Positive projections and for me, a way to seriously average down my buy in cost.

Good potential. Long term. Nice to see the price edge up at the end of this week.

Disc. Holding (the only one I kept in March as it had already tanked far below buy price) yet happy to hold it, bottom drawer style

[Ggcc]

https://www.nzx.com/announcements/353264

Guess the support was not totally there. Well let’s see where we go from here.

[Ltw]

What did they expect.
A SPP out of the blue
Not a lot of detail in it
and not bonus share or incentive.

[whatsup]

What did they expect.
A SPP out of the blue
Not a lot of detail in it
and not bonus share or incentive.

Under the circumstances I think a reasonable outcome, now its up to the top table to deliver with their end.

[Brain]

Under the circumstances I think a reasonable outcome, now its up to the top table to deliver with their end.

I agree and I am very confident they will deliver.

[sb9]

https://www.nzx.com/announcements/353264

Guess the support was not totally there. Well let’s see where we go from here.

With 80% held by one shareholder its bit hard to spread it around among remaining shareholders under current scenario. They're (CM Partners) probably talking/will talk to few investors with deep pockets to fill in remainder.

[whatsup]

With 80% held by one shareholder its bit hard to spread it around among remaining shareholders under current scenario. They're (CM Partners) probably talking/will talk to few investors with deep pockets to fill in remainder.


I hope that the original seed investors fronted up as I think their original cost was circa .25 per share.

[Ggcc]

With 80% held by one shareholder its bit hard to spread it around among remaining shareholders under current scenario. They're (CM Partners) probably talking/will talk to few investors with deep pockets to fill in remainder.
Regardless how you put it, they were aiming for $3,000,000 and hoping for more. I am still liking the company and am invested, but the idea to invest more for me was not worth it yet.

[winner69]

Joyce and Preston …. its a wonder Balance hasn't joined the party

[whatsup]

Joyce and Preston …. its a wonder Balance hasn't joined the party

SSSSSSSH , He/She has their work cut out propping up MMH !

[whatsup]

Nice little 12% pop after the SPP.

[whatsup]

Nice little 12% pop after the SPP.

So a 20% increase for the brave on the SPP, well done S Hers et al !

[Cadalac123]

Cap raise and now delaying the report too lol

[sb9]

Hmmmm...someone desperate to get out or leaky ship??? :eek2:

[whatsup]

Back to the SPP price, WHATSUP ?

[Ggcc]

Back to the SPP price, WHATSUP ?
Maybe people trying to get money, for what they believe are bargains elsewhere.

[traineeinvestor]

Maybe people trying to get money, for what they believe are bargains elsewhere.

Only $62K worth traded (at the time of typing this) – it's well above average volume for QEX but still surprising that the share price moved as much as it did.

Disclosure: Not held

[Cadalac123]

Guy running this business choked on the big stage. Literally was doing amazing and then all of a sudden the information flow became extremely unclear and a random capital raising before the report .. really why not release the report and show the direction the company is in before doing a raise

[kiora]

Chart looks like its signalling something?

[winner69]

Chart looks like its signalling something?

Heading to new 52 week low sub 50?

[kiora]

Heading to new 52 week low sub 50?

I would have thought so.The writing was on the wall back when they listed.BIG red flags.

[Brain]

Heading to new 52 week low sub 50?

Wonderful great buying opportunity for a company with tail winds.

[sb9]

Heading to new 52 week low sub 50?

At least that'll put Board and Management in check perhaps...

[sb9]

Oh dear..looking bit ominous now..

[Ggcc]

Oh dear..looking bit ominous now..
It will pick up for those who are patient, but how patient is everyone? I am thinking about purchasing more if it goes lower, but with an 12 month to 24 month plan for it to rise higher than this share price

[Cadalac123]

This IPOd so positively and then out of nowhere had issues not hinted at at all before lol wonder if the Australian venture will work out for them

[Ace]

This IPOd so positively and then out of nowhere had issues not hinted at at all before lol wonder if the Australian venture will work out for them

"In Australia, where the firm opened a new Sydney warehouse in February, revenue climbed to almost $5m, from $370,000 the year before."

I'd hope so. I have high hopes for QEX and quite fond of their prospects, despite the current global climate and anti-China sentiment.

[Food4Thought]

"In Australia, where the firm opened a new Sydney warehouse in February, revenue climbed to almost $5m, from $370,000 the year before."

I'd hope so. I have high hopes for QEX and quite fond of their prospects, despite the current global climate and anti-China sentiment.

Think there is a good potential for this to climb higher and with plenty of ecommerce growth.

Also milk product is trading well / up, expect the service of QEX to grow as well.

[sb9]

Think there is a good potential for this to climb higher and with plenty of ecommerce growth.

Also milk product is trading well / up, expect the service of QEX to grow as well.

Management and board need to gain confidence of market. And they need to show that evidence in trading numbers.

[Food4Thought]

Management and board need to gain confidence of market. And they need to show that evidence in trading numbers.

Yes SB9, I think so too. Show the numbers.

So I take your statement to mean communicating on a level that is confident, capable, back-up-able (*great word)/understandable, clear, with market /investor in mind.

I do agree. Hopefully they have had some time to adjust their strategy during lock down.

Can see them reducing some costs as a result of Covid.

Hopefully they are busy *hunting & gathering (or have a capable team of business development members) to find more business opportunities & retain/grow current clients. Making calls, emails. Zooming, etc.

To mind come Australian businesses (i.e. Blackmores) could tag on to their channels to rest of the world. To me seems this would be a win win as NZ would be relatively competitive for price.

I can see QEX flourish. With some adjustments, reasonably quickly regain confidence.

A good egg, roosting?, waiting to get better & then rehatch


Disc. Holding

[Food4Thought]

Wonderful great buying opportunity for a company with tail winds.

Hi Brian & others on this thread.

What is your current view on buying QEX?
What is a good buy in at the moment?

[Brain]

Hi Brian & others on this thread.

What is your current view on buying QEX?
What is a good buy in at the moment?

I recently topped up but because QEX is now 7% of my portfolio will not be buying any more. My view is that the share is speculative but I believe it is a well run business with a good chance of success. Now they are developing the Australian to China export market I would expect them to grow their turnover considerably.

A good buy price is anybody’s guess. $63M turnover with a market cap of $30M indicates to me that the pricing of the share is not too much out of kilter. Shouldn’t be an impossible task for the company to turn a decent profit with increased revenues.

[nztx]

I recently topped up but because QEX is now 7% of my portfolio will not be buying any more. My view is that the share is speculative but I believe it is a well run business with a good chance of success. Now they are developing the Australian to China export market I would expect them to grow their turnover considerably.

A good buy price is anybody’s guess. $63M turnover with a market cap of $30M indicates to me that the pricing of the share is not too much out of kilter. Shouldn’t be an impossible task for the company to turn a decent profit with increased revenues.

From where I'm sitting - a few points -

there are tight share registries and 'too tight share registers'' which are counter productive / restrictive.
Others can determine from this, which of the two they think that QEX falls in..


QEX seems to be a Volume needed, Low margin processor, as such needing volume in it's trades to clip the ticket on
particularly with Powder being onsold overseas among other trading, which must be a Product Buy In scenario.

That volume needs resources, working capital, possibly further hinting at (as admitted in past) still being under-capitalised
and shy on working capital adequate for increasing the job comfortably.


A sell down further by majority holders, increased share liquidity and increased S/Hdr spread with a Cap Raise
/ Institutional etc Offering etc may well do QEX a vast world of good to propel it into vision of more and
accelerate growth the business further.


This is the sacrifice that founders / major holders now may need to consider to grow & secure the business
into the future


Reliance on just capped Retained Profits (with no Div in interim) to fund growth will not generate the kind of
fast solid growth the S/Market or Investors may be looking for, particularly in current volatile economic times


Sooner or later a roadmap to transit from the small/medium closely held enterprise to the larger serious listed
trading company with adequate capital resources & working capital is needed, obviously the sooner the better.

[Brain]

Good to see that these guys are having a physical meeting rather than online. Another reason that I like the cut of their jib.

[Ggcc]

Good to see that these guys are having a physical meeting rather than online. Another reason that I like the cut of their jib.
Longterm their share price will go north, but the figures will determine when. I have a small holding and am looking to expand at the right price. At their current price they seem fair value, if their profit is roughly 3 million.

[Ace]

Is anyone attending the AGM next week? I wish I could make it although I have some questions I would love answered.

[Ace]

A2M releasing a market update citing a reduction of daigou activity impacting their sales - good to see that sentiment is mirrored elsewhere in the market. It's interesting to note that both QEX and A2M cite that demand for the products is still there in the Chinese market, however demand through daigou channels is diminished. Fortunately QEX has the bonded warehouse available to them which allows them to stock products there and have it available when required. I wonder if there is potential for A2M and QEX to utilize QEX logistics in this regard notwithstanding that A2M do have their own channels.

[ziptie]

Sinking ship, leaky boat ?

Really lost my ass on this turd. Almost not worth selling at this point... 😭

[Ggcc]

Sinking ship, leaky boat ?

Really lost my ass on this turd. Almost not worth selling at this point... 
It will come right after COVID just hold until you need the money. If you have the patience top up, but only at a price you will be happy with. It will be a 3-5 year plan not anything shorter.

[ziptie]

I really hope so, I have been topping up. Everytime its looked steady. Trying to hold my nerve

[Ggcc]

https://www.nzx.com/announcements/362113

Great................. Not

[Balance]

https://www.nzx.com/announcements/362113

https://www.nzx.com/announcements/362113

Great................. Not

Oh dear!

Oh dear dear!

[JSwan]

How the heck do you lose 4m of inventory

[Ggcc]

How the heck do you lose 4m of inventory
By theft as they believe happened. It is difficult to believe and it gives me concerns for their future, unless they can get a institutional investor on board.

[Balance]

By theft as they believe happened. It is difficult to believe and it gives me concerns for their future, unless they can get a institutional investor on board.

Stolen from a secured bonded warehouse?

Something smells to high heaven!

Could it be that someone has not been paying their bills and creditors exercised their right to seize goods?

[Ggcc]

Stolen from a secured bonded warehouse?

Something smells to high heaven!

Could it be that someone has not been paying their bills and creditors exercised their right to seize goods?

I am reading between the lines as well. This could turn ugly. I hope not and things go well. I did invest a little in this share and hoped for the best, but who knows.

[jimdog31]

By theft as they believe happened. It is difficult to believe and it gives me concerns for their future, unless they can get a institutional investor on board.

I cant imagine an institutional investor would have the slightest appetite for this?!

[whatsup]

I wonder what was stolen, $4,000,000.00 is a lot of inventory and would it need a forklift to remove it unless it was a bag of diamonds , someone must have seen it or was it an inside job ?

Does not look good for trying to attract more business so where do they go from here?

So many questions that need reliable answers !! ?

[Leftfield]

No mention of insurance coverage?

GLH

(Disc - never held.)

[whatsup]

I wonder it the " promoters " of the share will provide " bridging funding " to weather the pending storm, who were they I wonder ?

[jimdog31]

I wonder what was stolen, $4,000,000.00 is a lot of inventory and would it need a forklift to remove it unless it was a bag of diamonds , someone must have seen it or was it an inside job ?

Does not look good for trying to attract more business so where do they go from here?

So many questions that need reliable answers !! ?

My question is - are there any other flow on effects to any other NZX company that has lost inventory? Does anybody know?

[Timesurfer]

No mention of insurance coverage?

GLH

(Disc - never held.)

That is what would concern me the most had I still been an investor.
I think they have more issues than the loss of the stock.

[kiora]

17-2-18

I wouldn't touch anything C.E . is envolved in with a barge pole.

This is on rewind & repeat

[Ace]

If there’s no insurance this is just pure negligence and irresponsible on Ronnies behalf. How do you have 4m worth of stock get stolen? Bad news after bad news after bad news. Incompetent.

[Brain]

Theft from a bonded warehouse that has a handful of employees should be an easy crime to solve. Every person and every company has insurance surely. OK I am trying to be positive here but hopefully I am right.

[Lola]

i wonder it the " promoters " of the share will provide " bridging funding " to weather the pending storm, who were they i wonder ?

they promoted themselves by paying edison to write so called research reports. That crowd also does stuff for crp. Say no more.
The bond store is actualy owned by qex themselves. Narrows the list of suspects.

[NZ_Investor]

Glad I got out of this one at the AGM when they said their marketing strategy was to use one of them tik tok live stream marketers.

Had great hopes for these guys before but don't think I'll be trying my luck with them anytime soon.

[Food4Thought]

It will come right after COVID just hold until you need the money. If you have the patience top up, but only at a price you will be happy with. It will be a 3-5 year plan not anything shorter.

I agree, and surely hope so.
This could work out fine. It could.
That's enough positive reaffirmation for the year.

Better put this in a drawer and hope they do some magic. Was in my very risky part of my portfolio. Thought they were doing ok...

Come on QEX, pull your socks up.

[forest]

Stolen from a secured bonded warehouse?

Something smells to high heaven!

Could it be that someone has not been paying their bills and creditors exercised their right to seize goods?

Bonded warehouse one would expect high security (fences, alarms and security cameras).

Mmmm, I think Ronnie has a lot to answer for.
The Chair Conner English sadly is way to deep into cannabis to keep control of this company.
The NZX might lose an other company the way this is going.

[Greekwatchdog]

Get Eddie Murphy on the case. The Heat is On..

[Onthemoney]

I find this unbelievable. $4 million worth of stock over what time? Something is not quite right here....

[DownTownJr]

Glad I got out of this one at the AGM when they said their marketing strategy was to use one of them tik tok live stream marketers.

Had great hopes for these guys before but don't think I'll be trying my luck with them anytime soon.

Tik Tok? Last week I was looking at investing with these guys, but after today's stock loss (if you can call it that) and Tik Tok comment, well it's a hard pass now.

[Pricey]

My mind immediately went to government seizure but they don't know its the gov at the moment so they can only classify it as theft. This will be an interesting case to follow!

[NZ_Investor]

Sorry live stream marketing. In the AGM they mentioned they employed one full time live stream marketer which was their primary source in China for marketing of inventory in the bonded warehouse. While live stream marketing is no doubt a big industry in China it has since died down since Covid, and also this was not the direction I had thought the company was moving. I was excited for Australian expansion, but given the amount of competition and the new angle of their Chinese operations, I was wary and decided to cut my losses.

Looks like I dodged quite a few bullets.

[Mel]

No mention of insurance coverage?

GLH

(Disc - never held.)

Oh no!! According to the latest announcement re Insurance: "The Board has reviewed QEX's insurance position, and at this stage does not
consider that QEX is able to mitigate its potential losses through any claim
under any policy of insurance"
Seems rather implausible, as does the entire situation :(
Disc: never held

[Leftfield]

Oh no!! According to the latest announcement re Insurance: "The Board has reviewed QEX's insurance position, and at this stage does not
consider that QEX is able to mitigate its potential losses through any claim
under any policy of insurance"
Seems rather implausible, as does the entire situation :(
Disc: never held

Yes I saw that...... Mickey Mouse could manage a company better. Feel sorry for holders.

[youngatheart]

Why would anyone invest in this company as what would stop this from likely happening again....

[whatsup]

Falling knife now, so very sad for a very hard working team, where to from here, all depends on the banks Im picking so maybe a cash issue is in the future but at what price , only 55 mil shares on issue atm?