Originally Posted by
SausageDog
Blis’ biggest problem is their ingredient supply chain, they have soaked up there reserve raw material in this extra sales demand. Fonterra manufacture their probiotic K12 raw ingredients and can only deliver contracted supply and have no capacity to increase the raw material supply to BLIS. This will cause a raw material supply shortage going forward as indicated in their release on Thursday. Basically they can’t sell more than the have, and they have no capacity for increasing production of the pure K12 ingredients. Increasing sales to $20m next year is unlikely unless they find additional raw material supply. It not that easy to ramp up, and who else can wholesale manufacturing probiotics especially in NZ.
I believed Blis is overvalued at present as they haven’t proven their reliability or their business continuity. Perfect storm in demand leading to shortages in the future months.
Tread carefully here, great business in principal , don’t get burnt by the hype, this is a business still run by scientist and not businessmen and has growing pains to come.
Their products absolutely do work , I have seen proof time and time again and the science backs it up. I do believe in Blis but to many shares on issue and they are constrained by their ability to rapidly grow .
Disclosure: I am an amateur on here and this is just my very small opinion.