CGP - Rhinomed "Make Every Breath Count"

[Bigane]

A very interesting turnaround story. After doing not a lot over the past few years, the Board and management underwent a major restructure in Feb 2013. They now have an experienced management team with a marketing focus.
Consegna Group Ltd (Soon to be re-named Rhinomed) is a respiratory technology company that is about to launch its first product 'The Turbine' onto the market in mid November. The turbine is a nasal dialator that increases airflow to the lungs by 38%. Some are describing it as the next generation of Breathe Right nasal strips.
The first target market is performance athletes via online sales. The team is also looking at applications for snoring, sleep apnea, and drug delivery for future product launches.
While there is a chance that market take-up will be slow, margins on the Turbines are high (cost of production per unit is less than $1 and the sales price is approx AUD$25 for a 3 pack) and coming off a low market cap (currently AUD$16.5m), I think there could be a lot of upside.

http://www.rhinomed.com.au/about-rhino-med

I would be interested to know others thoughts on this company.

[percy]

Well the company's track record is terrible.
The product however could be a real winner.
I note it is available for packet of 3 for $24.95 plus shipping.
I would suggest you order a packet and see if they are any good.
If you are impressed buy some shares or options CGPOA convert @ 0.06 30/4/17currently approx. 2.4cents.
I am keen to hear your opinon.

[Bigane]

Agreed re. the track record and they are honest about past failings in the most recent annual report. If you look at the new management, eg Jane Ballentyne - Former Senior Exec of Nike, and CEO Michael Johnson (Involved with the licensing of Acrux to Eli Lilly) I think this is going places. If you look at GSK, who paid US$588m to acquire Breath Right in 2007, you get an idea of the potential.
I am planning on ordering a 3 pack, keeping one for myself, and giving the other 2 to friends who are into distance cycling and distance running to get their feedback.
The options could be huge, considering that they convert at 0.06 and the shareprice has already cracked 0.05.

[Bigane]

You are right Moosie, there is a bit of a leap of faith here with the research being in-house.
GSK's Breathe Right was shown not to make any clinically significance, but that did not stop it from selling big numbers. Also, becasue the Turbine is a 'lifestyle device' rather than a medical device, there is no regulatory requirement to proove effectiveness.
http://www.mymoneycalculator.com.au/share-market-insights-cgp-asx-consegna-group-ltd/

You also have to think about the psychology of performance athletes. They are willing to pay big $$'s to get any advantage. Back in my school days, I was a pretty serious basketballer. I can remember forking out about $220 in the late 90s when Addidas released their H3lium range, in the hope that having helium in the soles rather than air would help my vertical. It didn't, but I did end up paying about $70 more than I usually would for a pair of bball shoes.

[Bigane]

Up 32% yesterday. Think there is still more upside leading up to the launch

[Bigane]

Product launch of The Turbine confirmed for Wednesday 20th of November. Great presentation from the AGM last week sets out their marketing strategy. I'm expecting big things in the coming weeks.
Have signed Australian professional cyclist Mark O'Brian as a brand ambassador.