Cap raising today, any ideas as to what price considering that the $1.00 IPO has not been achieved post float
.65 per share as approx $12 mil is wanted from instos.
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Cap raising today, any ideas as to what price considering that the $1.00 IPO has not been achieved post float
.65 per share as approx $12 mil is wanted from instos.
Shows the value of a share market listing eh?
Trilogy would have struggled to list by themselves even though they seem to a very well run company with a lot of growth potential. Have bought quite a few Trilogy products as presents for the women in my life as they all rave about their products.
Ecoya was struggling for respectability alone but with Trilogy should become a viable company over time.
As to the price, depends how much the bakery takes up I guess.
They should have purchased Trilogy prior to listing and had it integrated. It would have been a far better proposition rather than listing a candle company!
yea m8...........huge worldwide demand for scented candles right now.........esp High Tech ones!! LOL if you bought into this nonsense you get what you deserve!!
Depends on how you see the glass. Two cap raisings now that Directors have had to front up for and that most large investors in the market have passed on.
I did mean sign of confidence from the directors, not the market in general. I wouldn't have thought Fyfe would put money in unless he thought it was a go-er. Personally I think I will wait for it to go lower before even thinking about it.
But as one of the few listings on the NZ market this year, it is interesting to follow.
YEA Balance.......like a hole in the head! Masters of Spin are NOT required in this country or any country for that matter. They are deluding themselves and many unsuspecting folk out there that they have a viable business story to sell.........I very much doubt it. Their one and only interest I suspect is to do another "pump-and-dump" to line their own pockets.........and the best they cud manage is a candle making business.....OH PLEASE! OH DEAR GOD SPARE ME>>>wot an embarrasment to our market.
..........that's right UU.........Masters of Spin indeed, even the big boys can be fooled if your'e good enough........well maybe some of them some of the time..........but not all of us.......
Promoting themselves across the Tasman ..... with the suggestion that this will be a $100m plus takeover by some cosmetic ginat one day
Product increasing its global presence by the looks of it as well
Last week, Schweighoffer signed a deal with a distributor to sell its products in Dubai.[/QUOTE]Quote:
This year, Ecoya made a loss of $NZ2.3m and has forecast to make another loss of $NZ5.2m next year. But the brand has come a long way and is now stocked in David Jones in Australia, Bloomingdales in the US, Lane Crawford in Hong Kong and Takashimaya in Singapore.
http://www.theaustralian.com.au/busi...-1225978217283
Hey guys, just wrote a first round blog post (http://gregnz.wordpress.com) of my 2011 'battle of the startups', a comparison between Xero and Ecoya. Would love to know what you think, since I've only just started looking at Ecoya.
Quick excerpt:
"So how much is Xero’s cash and celebrity valued at? In a startup, cash is worth much more than the face value. Cash in startup land = ability to survive another few months = not having to go back to market or raise debt = much less risk. If we do a quick market cap comparison, Xeros cash and celebrity are valued at approximately… $235 million! (thats the difference in market caps between Xero (270million) and Ecoya (33million).
Which… is quite a lot. Justified? Hmm. Ecoya will have to raise debt or go back to the market for more cash (unless Trilogy is an undisclosed cash machine)."
Will also post this on the Xero board...
cheers
Greg
Annual report came out recently (viewable at http://file.nzx.com/000/096/5215096.pdf).
The numbers look reasonable to my uneducated, ignorant eyes. Not sure what all the pictures of underdressed models are for, especially as not all of them are holding candles.
Importantly, they are looking at turning a profit next year, which is ahead of schedule.
Share price is almost back at IPO levels, although the warrants will put a soft cap on the price in the intermediate term.
I would think it's not the best market condition to sell $50 candles, most of which I personally find a bit eccentric (odour-wise) and intense for enjoyment, but I don't think I'm the target audience anyway (possibly the target market, though).
Damn, lost my post. Trying again in a summarised form...
my take aways were... nice increase in revenue. cogs increasing linearly. 1.8 million in cash which should last about 3 months. 5.5 million in bank debt coming due in <3months. So in less than 3 months, they will go back to the banks or (less likely imho) to the market. They seem to be living paycheck to paycheck. Interesting the banks don't go for longer term funding, but perhaps they're a little risk adverse.
Anyone have any idea why the admin expense is the same size as the sales expense?
cheers
Greg
Geoff Ross must have such a ball with this spoofy stuff. When it comes to Ecoya, I often figure it must have been some drunken bet over a late-night restaurant meal...
Well, at least that's the only rationale I can come up with - and I reckon the underdressed models are all just a marketer's private joke... though someone should ask at the agm whether Geoff had to attend the photo shoot. :pQuote:
Geoff: "Yeah, the Forty-Two Below win was a real gag, but I'm getting bored... have to think of something new... hard to choose really... it's all about the marketing, you know... I reckon I could sell anything..."
Other Guy (staring glazedly into the flame of the candle centrepiece): "Candles... what about candles... bet you couldn't make a business out of those!" (giggles tipsily)
Geoff: "Yeah, of course I could. It's all about the marketing. With a bit of managing shareholder expectations. Bit like walking a tightrope... hard to do, but once you've mastered it, it doesn't matter whether you're strung up between the washing line poles or the twin towers... well, sort of"
Other Guy: "Nah. Candles? Really? I mean, who buys candles?"
Geoff (mind begins working): "No it's dead easy... really......."
Other Guy (slapping a $50 bill on the table): "Okay, $50 says you can't get a business up and running selling candles"
Geoff: "How long have I got?"
Someone must be buying them though, right? Someone with lots of money and a diminished sense of smell...
Hey, I never said they weren't a good bet... bit of a challenge but nothing to someone who probably developed a sense of humour from being called GRoss on a daily basis. NZ could do with him building and selling off listed businesses on a 3-5 year cycle, no matter how naff the original concepts he chooses to ride on.
No need to go back to the bank - they've already been !
from note 18 (p71)
"The combined multi-option facility [with the BNZ] is $9,500,000 and the facility expires on 17 September 2013. At 31 March 2011 $3,500,000 was drawn against this facility under a rolling multi option facility for 30 days at an interest rate of 6.74% and $1,947,000 was drawn under the overdraft facility at an interest rate of 7.62%."
So just under $5.5 mil drawn down, meaning another $4 mil still left to go.
The provocative photos are taken from their billboards promoting the new body products line. I've seen a few of these up around Auckland/Wellington. Very effective at grabbing your attention.
Like most I was skeptical with ECOs IPs offering - scented candles. However I think Ecoya 1 year on is a completely different beast, with the Trilogy acquisition and the launch of the body care range. Trilogy was a steal at $18.5 mil (give or take) in my opinion. Fast growing revenues AND profitable ! Net profit from Trilogy's last 12 months trading was approx $3.7 mill (p80), which equates to a PE of 5 !! And this is before any of the synergies with Ecoya have been exploited.
Haha actually I bought a couple of items from their 'body care' range last week for girlfriends birthday. Ecoya products had a prominent center display near the front of the shop. Sales assistant was very enthusiastic/knowledgeable about their products. She said the ecoya products had been very popular and were selling well. Surprised me how much she knew about the company/products/brand story etc...
This reminds me of FTB, where they pushed the vodka to bartenders, as these where the ones who recommend the drinks to the punters, not the bar owners/managers
I think its a subtle hint to do a bit of S&M, dripping wax onto skin ,hurts for an instant and doesnt burn and uses up the candle fast.Drip "OWw" Drip Drip "Ow OW" Drip Drip Drip "Ow Ow Ow" Quick go out and buy another $50 candle , get some Vodka too".. :)
Thanks for the reference to the bank facilities, I missed that in the notes. I'm still curious to know what the admin expense is and why it is equal to the sales and marketing expense. Might be a question to ask at the AGM, anyone seen anything about that?
cheers
Greg
Share dilution bugs me off.
Yesterday's announcement of a $1.15m share issue to "key investors" is an insult to small investors.
Last month we were told ECOYA was now at break-even point, so having carried them since float we should have been offered a rights issue.
This privileged "key" group, including "independent" director Rob Fyfe, were given a 10 % discount on the current share price plus Warrants (last traded at 10.5c).
And the warrants due to exercise shortly - no chance
So why don't you go to their website and complain,it really angers me when companies do this,maybe it was cheaper for them to do it this way,but ,nevertheless the option should have been there inall fairness.
If enough of you were disgruntled and complained,I think they would have to take note,especially if at some time in the future they had to come back to you for funds.
To be fair it wasnt really at a discount. There are very few shares on offer over 90c just a few thousand dollars worth.
Very few sellers about , which is a good siign. Was far too small a number for a rights issue , given the costs.
The company appears to be going places , there some smart cookies involved in this one , should be some profit left for the ordinary shareholders
Wakey wakey! It's what is known as "Corporate Greed".
They've been trading above the 90c for the last month - so it was a discount.
Yes it was a relatively small amount and hardly worth their effort given their announcement in October that they had reached break-even. It's difficult to believe that "debt reduction" required this issue.
Those Warrants would be the ECOWB dated 15/6/13 currently trading at 10.5c - so that was a pure gift.
I agreed the company seems to be moving in the right direction - I just don't want this dilution reducing my share.
After seeing the massive discount on their candles at living and giving, and the merchandise not moving at all , decided to sell my small holding
Just a warning to holders , it has taken me seven days just to sell 5000 shares at .96c , they are so illiquid that they almost impossible to sell. You better hope there some good news down the track or your going to be stuck with them.
Lack of liquidity can also play to your advantage if the company is doing the right things. It just comes down to the results the company produces and how long you are prepared to hold on to the shares.
For somebody who wants to hold to shares long term, taking 7 days to eventually sell the shares isn't really an issue. No doubt it is a big issue for a share trader.
Thanks for the comments on the discounted candles Ratkin. It's probably not such a bad thing they are trying to move their stock at a discount after the Christmas season. I'd be far more concerned if they had adopted that practice during the silly season itself.
Exactly and they were mine , i can easily prove it if you like . Had an order in for 5000 last sold on feb 2nd , had 200 left over that sat at the front of the queue for the next week without sellling. Yesterday somneone jumped in front , wanting to sell at .95 . So i sold the remaining 200 on market yesterday at .93 cents , that sale is the reason the price dopped yesterday fromn .95 to .93
Dont appreciate my honesty being bought into question
All i said was it took seven days to sell 5000 shares
Happy now?
A quiet thread, even after yesterdays anns
Mike Taylor is a sharp operator so he must have seen value somewhere. The SP has pipped up today too.
I haven't been following ECO, but Geoff Ross? (Level 42 guy) is a great marketer.
I'll be paying more attention now though ;) perhaps I'll start by reading this thread
Oh well the thread was a short read, not much going on.
Yes, the liquidity is almost non-existant. I do hope MT knows what he's doing.
Have been a shareholder for about six months and it's fair to say I wouldn't be invested with them if they didn't have quality directors and professional investors involved in the company. When you look at what the company sells you can't get too excited about their prospects but having great directors and smart professional investors on board suggests that it's not a bad company to invest in. Time will tell.
I'm disappointed they did not offer existing shareholders the right to purchase more shares at 90c. It means dilution for existing shareholders.
I am not a shareholder but I think they way Xero did the recent capital raising was the fairest for small investors.
I'm not a shareholder - but has Ecoya considered the potential dildo market?
This is not the first time thay have did this:
"Robinnz wrote this on the 12/11/11: Share dilution bugs me off.
Yesterday's announcement of a $1.15m share issue to "key investors" is an insult to small investors.
Last month we were told ECOYA was now at break-even point, so having carried them since float we should have been offered a rights issue.
This privileged "key" group, including "independent" director Rob Fyfe, were given a 10 % discount on the current share price plus Warrants (last traded at 10.5c).
The directors may have been a success in the past but it does not give them the right to do as they please with our company, like myself I may only hold a few thousand shares (6k), regardless the number of share I hold, I am a share holder and should have been give the same options to purchase shares at discount or at least have a say in the matter.
I intend to express my disapproval via their website.
Just a quick blog post on ECO at http://gregnz.wordpress.com/2012/10/...-i-sold-ecoya/
following AGM.
I agree with your blog post when you said "acquisitions which is something that makes me nervous." I'm expecting them to purchase cosmetic manufacture. Phoenix Cosmetics would be a good fit, but it might be quite costly to purchase it, if Phoenix Renata decides to sell. It will also give Ecoya another outlet to sell their products and it would be perfect place to sell Trilogy skincare range. They already have 9 stores in NZ and another store in Australia.
Yeah, acquisitions to me indicate theres not enough growth in the core brands. Theres always confusing accounting and things associated with them as well, which just gives me shivers. Talking with Sarah from Trilogy just illustrated how competitive that market is (500 brands of skincare for NZ alone), and the fact that the chief instigators were not in there boots and all was enough to call quits.
Now I just need to look at Xero again!
Taylor reports that ECO is overlooked for MOA initial public offering. Fundementals remain strong for this, despite SP reducing...
Both Taylor and Brian Gaynor bought in at about the $1mark I seem to remember and it then shot up to $1.40 for no particular reason. It is now down to around $1 for no particular reason. From that I take it that it is at around the right price until the next update or news comes out.
I think Ross resigned as CEO during that period but it is still run at the top by the Business Bakery boys. He said he had to resign as perception was you cant be CEO of both. My guess is the BBb all have their particular skills and will utilise them as needed regardless of title.
So who is buy a candle for a christmas present?
FORECAST: ECO: Ecoya - Earnings Update
Ecoya provides earnings upgrade and continues growth trajectory
Ecoya Limited (NZX:ECO) has today outlined its guidance for the year ended 31
March 2014 and confirmed it expects to exceed previous market guidance for
the 31 March 2013 year.
Revenue is expected to be $26.6M for the year ended 31 March 2013
representing an 18% year-on-year increase. At EBITDA for the full year, Ecoya
expects a profit of greater than $1.1M which is up on the breakeven
prediction made in November last year. This update is based on unaudited
financial statements and the company will announce its final audited result
for the year prior to 31 May 2013.
The company outlined its growth initiatives at its AGM in September 2012
including significant investments in product, packaging and brand. The
forecast profit result at EBITDA has been achieved on the back of the
platform built in the first half of the year.
The Ecoya group expects this growth to continue and is forecasting revenue in
excess of $30M for the year ended 31 March 2014, with a forecast EBITDA
profit in excess of $2M for the full year.
The Ecoya business is seasonal with the Christmas gifting period falling
within the second half of the financial year. The group expects a similar
seasonal profit in the coming financial year, as was experienced in the year
ending 31 March 2013.
The business continues to grow with opportunities both locally and within the
international markets.
Key recent wins include the expansion of Trilogy's distribution and reach in
the UK market via all 27 John Lewis stores throughout Great Britain, and a
distribution deal with Sigma, a leading wholesale and distribution business
to pharmacy and owner of three of Australia's best known pharmacy retail
brands - Amcal Max, Amcal and Guardian. The group has over 450 stores
nationwide and the new retail partnership gives Trilogy core product ranging
in all stores.
Revenue for Trilogy in Australia is up 30% on last year making Australia the
biggest market for the Trilogy brand. Trilogy now represents 60% of total
group revenue.
At 31 March 2013 net debt was $6.6M down from $8.4M at 30 September 2012,
resulting in headroom of $2.9M on a total facility of $9.5M. The company
plans to further reduce net debt through continued positive trading.
I beleive Trilogy's products are very good,and the future for them is good.
But the company or share price appears to have built in 5 or 10 years future profit already.
With 61.2 mil shares at today's 95cents the market cap is $58.179 mil,yet revenue is expected to grow to only $30mil for the year end 31.3.2014 and ebitda of over $2mil.So instead of spending my $58.179mil on buying ECO I would earn more leaving it in my savings account at my bank.!! Why bother?
Except importantly that the proceeds go to Ecoya! Pretty worthy approach from the main shareholders and certainly a sign of confidence or pessimisitically a sign that they're running out of cash?
But for me this looks like a good bet, in November the forecast for Year End was breakeven, now 4 months later its for 1mil+, if we look now to forecast to 2014 we could be seeing 4mil+ profit, which would certainly see this SP move in a northerly direction.
p.s Yes I do hold a small parcel of ECO so bias is at play;)
Who knows how to rename a thread ;)
Trading on a EBITDA multiple of over 20 times for FYE March 2014.
Only one way for this stock to go.
http://www.nzherald.co.nz/business/n...ectid=10837220
The Ecoya meeting this week was a complete contrast to Sealegs. The conservative Northern Club was positively hip as the scent of candles floated through the air, young girls helped shareholders to their elegant linen-covered tables and directors Rob Fyfe and Grant Baker wore smart suits and ties.
Director Rich Frank had just flown in from his home in Beverly Hills and commented that he had to miss the Emmy Awards to attend the Ecoya meeting.
Chairman Geoff Ross gave his usual polished performance. He said the company had excellent prospects and the Trilogy skin care products now generated more sales than the traditional Ecoya candles.
He told shareholders that revenue for the six months to September was expected to be up 16 per cent from the same period in the previous year.
Full year sales were expected to be $26.6 million, an increase of 18 per cent over the previous year, and operating earnings would be above breakeven for the full year.
Ross also said the company would be looking to acquire an additional business in the next 12 months and this would be partly funded by raising new equity.
Why is Fyfe leaving? His reason seemed a bit light to me - its not as if he will be wastin his day in the dole que waiting for a new job.
https://www.nzx.com/files/attachments/185949.pdf
Running way behind forecasts now but wait for this ..
Promotors and directors provided consultancy and management services to the company and paid themselves $1.349m in fees in the last 18 months.
They must have been crying into the Moa beers as they reflect on how they let shareholders down?
the product looks have a future.., just not sure the people can execute or now
Yeh Balance, they really need to trim those sales and marketing expenses. At 5.3m for 6 months to achieve sales of 13.5m it's just too costly - as much as the Cost of Goods
Franceska Banga of the Government Venture Investment Fund recently said in a RadioNZ interview that they "got comfort" in Moa because the main person involved in that venture, one Geoff Scott, has brand-building experience.
The hog has to say, if Banga and others can't get a name right, what sort of chance do they have in looking after taxpayer capital in developing venture markets, getting more "banga" for their buck, as it were?
Ha. Banga is looking a bit different in these two photos:
http://www.nzvif.co.nz/nzvif-management-team.html
http://www.nzvif.co.nz/franceska-banga.html
marketing expense is alright ..if they can build up to a sustainable volume.
TIL - Trilogy.
I got interested in this company about a month ago after reading it was making inroads to Asia (placed in over 200 Mannings pharmacy stores in Hong Kong, and with products very popular in Japan and Singapore).
http://www.scoop.co.nz/stories/BU140...ernational.htm
Last month, I bought a parcel, anticipating an announcement that would turn around its stock price slide of the past 12 months. And it's good to see that they have this afternoon announced a $2.1m EBIT (up 56%) off $30m revenues (up 12%). Debt has been reduced by 35%.
They are selling Ecoya and Trilogy products one every 17 secs. Moving into the UK and US mid west (via 41 Whole Foods Market stores). Looking good.
https://www.directbroking.co.nz/Dire...spx?id=3590432
looking good., at the moment.., trend is up up up
enjoy..nice little up trend.., will up to 99c...soon
Me thinks to sell now around 80c and buy back in on a dip.
it is on target to 99.soon
Dropped off quite a bit. Where to from here?
I'm anticipating a bear market in Equities over the rest of this month, and so am holding off buying back into TIL for now...but at 65c it sure is tempting. I'm picking a dip to 61/62c before climbing again. This company is now profitable.
Their latest announcement was very positive imo. Hopefully it'll increase the numbers.
After doing some fundamentals I felt fundamentally underwhelmed with this stock. Obviously this is seen as a potential high growth stock but surely if this is the case then revenues should be gaining greater leverage to support expansion? Nice to finally see a profit looks ensured for the financial year but they've slightly missed their intended targets for the year. I also don't like the "goodwill" figures considering the highly competitive market they are situated in. One ot keep a eye on as market scale could see a vast improvement in times to come but not for me just yet.
Surely there are better places to put your money
Yes that's right Moose - I did see a head and shoulder pattern late Feb / early March and expected that to bring a correction, and sold down to hold 40% cash accordingly ...but that turned out to be a false flag, and so I bought into the market again. However, "Sell in May and go away (Nthrn Hemisphere Summer holidays)" is a dictum that's proven prudent many times before, and we'd be foolish to ignore it.
Apart from precious metals and a few defensive stocks, I'd rather hold cash than invest long in much at the moment. Even my PM stocks I'm looking to sell in the first week of June, because of seasonal patterns (end of US tax year sell off, etc) to buy in again at the end of June. Check the charts for relevant historical patterns and you'll see what I mean.
http://www.kitco.com/charts/historicalgold.html
As for Ecoya, I like their products, their Asian growth (particularly in Japan) and fact that they have now turned in a profit. Their sp rose quickly from 46c to 80c before falling back to where it is now (65c), and IMO we can expect buying interest again soon.
BC
Discl: no longer holding but I do plan to pick some up again before long, especially if the sp drops closer to 60c.
i take my time..no worries for me.., after profit announcement will see...,stick with my views..
it is a great time for me to top it up
any ideas what's driving it down?
I don't mind at all, having just topped up at a good price, and with an even cheekier bid not far off market.
This is now a profitable company with clearly better value than prior to their last financial report when earlier this year it was trading around 50c.
love it ... good way to topping up