Watching the charts closely here. Getting close to the point indicating reversal of the downtrend.
These dual listed companies usually go gangbusters once ASX opens. Oh wait, the ASX listing was a flop.
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Watching the charts closely here. Getting close to the point indicating reversal of the downtrend.
These dual listed companies usually go gangbusters once ASX opens. Oh wait, the ASX listing was a flop.
Interesting acquisition, remember last time they brought that other thing and I wonder what happened to the share price after that 'bargain' SPP given to shareholders? Also found it interesting how they paid all cash for it... if management (of Lanocorp) were so confident, you'd think they'd only be to happy to take at least some shares in the 'heavily undervalued' TIL? (did I read it wrong?)
Ah well, time will tell how good this acquisition is, certainly made all the right noises, using bigly words like diversity and exposure. The jump in share price today means it is now just over half way to where it was this time last year ;).
Breaking the announcement down I think Trilogy have performed a masterstroke.
Trilogy is buying establish brands with history.
"New Zealand business that was founded over 25 years ago in Christchurch"
Lanocreme product since 1959
New sales channel and markets opened
Lanocorp sells products in a lot of sovineir stores and wider chain of supermarkets and goods stores.
They also established in US, UK and Canada in other platforms. Those who are familiar with Lanocreme will know that it can prove to be a big hit in Asia.
More economies of scale
"3,200sqm purpose built manufacturing facility in Rolleston", which will be more efficient with more volume.
Diverse product range
Trilogy can now sell a much more diverse product range that include products that have rosehip oil, chia seed, honey, coconut oil, Bee Venom, sheeps placenta ......and so on. Lanocorp also sells a cheap version of rosehip oil so its a way to his the market with a cheaper alternative and keeping Trilogy as the premium. The product range is bigger too now as they now sell in the skincare, bodycare and haircare brands.
Room for growth
With more access to other sales channel they can sell in more places and with Trilogy's store local distribution Lanocorp who has only established a early base in NZ can grow much more quicker.
If it can close above 230 then that'll be confirmation of an upward breakout from the falling wedge (along with other indicators pinging off) - 320 target price.
Great to see the buy sell depth change on this announcement. BWX closing on $6 just goes to show where til can be if they start making waves in china
This announcement gives the company more direction and the share market loves it, before that there was a bit of uncertainty that no one wanted to be a holder.
Well on way to 330 now
Good divie eh couta - well done - well timed (assuming you haven't sold yet)