Me Today MEE

[SailorRob]

Just wondering, has anyone actually read the listing document? http://nzx-prod-s7fsd7f98s.s3-websit...864/318680.pdf

There is a lot of talk about the products and website and All Blacks here but I don't see much discussion regarding the numbers which is what's going to matter at the end of the day.

Let's look at the money the founders actually have invested in this enterprise - they say around 2 million dollars... Nothing at all to actually quantify this but let's go with it. For that they have around 225 million shares or 61% of the company. So their effective price is 10 times less than the current price you're buying in at. In reality it will be less than that, probably between half and 0.8 cents a share.

Anything wrong with that? Not necessarily, but I haven't read one comment regarding the insiders lock up period before they can start getting a 1000% return on their investment selling to you guys. Now lets look at Kerr specifically, he is earning his entire investment back in this enterprise in wages from it in 12 Months. I'm picking that the others will also be paying off large percentages of their investment in the enterprise from the enterprise.

Now if they can take it to $1 then we're all cool with that eh. Lets have a think about that.

To get to $1 that will mean at least a $400 million dollar company (with the coming dilution and options it will in reality be much bigger than this). Is that rational or realistic to just think they can conjure this up?

Trilogy was already a massive success with 10 million dollars in sales when it was sold in 2010 to the people you're all going on about for, wait for it, 10 million dollars. Or ONE times sales. There were some Ecoya shares thrown in later but essentially it was around 10/15 million...

There is no comparison between Trilogy when this lot took it over and Me today. None.

Your guys are currently paying around 40 times sales, some of you have paid over 50 times.

What does a business have to earn to justify a market capitalisation of $400 million dollars? How much does it have to sell and what are it's margins expected to be?

So if you're buying here at around $33 million, what are you getting for your money? You're getting a few million in cash which the founders are quietly feasting off in the background (while waiting for more cash to come in from fresh capital) and you're getting hopes and dreams. Remember the Trilogy story is vastly different to this.

The founders are not financially aligned with you and don't really have skin in the game. If I could buy in alongside them at sub 1c a share I might have a punt, knowing that's exactly what it would be. But all you're doing here is giving them a 10 bagger for nothing.

You'd all be much better off together putting in 32 million cash and forming you're own business. As that's what you're doing, you're paying 32 (many of you MUCH more) for this shell of a company with nothing but hopes.

In this market anything of course can happen, you could make or lose a lot of money. But that's not investing, you can do the same in the casino and it will be more fun.

Come on guys, read the documents and look at the numbers.

[wilba]

I have read the docs, it's why my weighting is <1%. It's neither going to make me rich or poor, but a little fun distraction

they also have no infrastructure - product development, manufacturing, warehousing, administration is all out-sourced. What are you buying? I have no idea other than a bit of hope and that there is opportunity for real scale at some point. i don't think that position is unique though, that's how a of of companies have started out in recent times in comestics

[Averagetrader1]

Valuation is high but what isn't these days. What are some of your bigger holdings / where else would you recommended investing for a high return on the nzx? I don't think website sales are an issue at this point but yes they do need to come up over time. Happy to leave this in draw and be patient. Cheers

[SailorRob]

Valuation is high but what isn't these days. What are some of your bigger holdings / where else would you recommended investing for a high return on the nzx? I don't think website sales are an issue at this point but yes they do need to come up over time. Happy to leave this in draw and be patient. Cheers

High? It's in the stratosphere, find me another NZX company more expensive. 40 to 50 times sales? Tesla is half the price.

This is one of the most expensive companies in the world. The SP500 is currently incredible expensive, up there with most expensive in history as is the NZX but they trade around 2.8 times sales, so MEE is around 1400% more expensive on a price to sales basis which is all we can use as it's got nothing else except revenue.

To just say it has a high valuation but what hasn't, is missing the whole point. This company makes the NZX look like it's being given away free.

Yes the NZX is very expensive and therefore I don't own anything on it except Steel and Tube which I bought between 50 and 80c, still think it's cheap but not super compelling. A very likely scenario for the NZ50C would be around zero return over the next decade apart from dividends as with the SP500. Anything is of course possible.

This is the most bifurcated market possibly in history with the major indexes very high in aggregate and some nose bleed valuations in there, along with some incredible quality companies that are extremely cheap, and lots of them too.

I would say my whole portfolio average would be around 10 times earnings, so around a quarter of the price of the NZX. Biggest holding is the highest quality company in the world, Berkshire Hathaway, trading around 12/13 times earnings, followed by Markel another extremely high compounding machine. Lots of Oil/Gas in there too.

Another company Alliance Resource Partners trading at a Price to average 10 year earnings of 2 and was 1 last year and nothing has changed for it's earnings. Did 280 million free cash flow last year and the the market cap was 300... Never had a single negative quarter of cash flow.

CK Hutchinson... there's lots of incredibly cheap incredibly high quality stuff out there right now but everyone's chasing the dreams, particularly here where everyone is just looking over the same few companies and picking them over and over again or so it seems to me.

[Averagetrader1]

Seriously? Tesla has A PE of circa 1000 lol. I can definitely name other nzx companies with higher valuations than MEE. Note that They are expecting revenue of over 2 mill for this period. 6 mil in bank as well. Hardly think you can be comparing those two. Look up CBD and Blis if you want to look up higher valuations. Its clear you have a low risk appetite which is totally fine. Just know that you won't likely experience any heavy gains with that portfolio. Totally respect that too. All the best!

[Checkmate]

Well if they beat even meet their expectations of $2m revenue in 2021-2022 that is a massive increase in revenue from their interim report, almost 100% at a guess?
then we’d be at about a 15price to sales ratio.. which isn’t madness for the early stages of a company looking at massive growth each year and expanding to international markets.

infrastructure and manufacturing facilities - is this even needed or would this create unnecessary fixed overheads for a small starting out company? Why would they want that when they can outsource their operations and focus on growing sales and creating brand value?!

It’s a bit of a “what if” company and yes we’ve taken a punt, but I’m not risking huge amounts here, plus I’m right into my well-being so I can feel a sense of supporting the company through buying their product which is pretty good by the way.
overseas markets like japan and UK will lap these products up too.

[Averagetrader1]

Exactly. People stating obvious things on a new company. We know its new and its risk vs reward like any small cap. Some go well others don't. But don't compare this to blue-chip stocks lol

[SailorRob]

Seriously? Tesla has A PE of circa 1000 lol. I can definitely name other nzx companies with higher valuations than MEE. Note that They are expecting revenue of over 2 mill for this period. 6 mil in bank as well. Hardly think you can be comparing those two. Look up CBD and Blis if you want to look up higher valuations. Its clear you have a low risk appetite which is totally fine. Just know that you won't likely experience any heavy gains with that portfolio. Totally respect that too. All the best!

SeriouslyLOL. (LOL is a piss take, I'd never actually use the acronym).

I think you're confusing P/E ratios with P/Sratios. When a company doesn't have a E to use in the P/E then you can't use itas a valuation metric. So when you compare MEE to Tesla, the price you'repaying for your share of the Revenue, yes seriously LOL.

Now of the two companies you have named as beingmore expensive on the NZX, well done, you found one. CBD, and I'll bet you own it too LOL. Blis is far far cheaper than ME I'll leave that with you to figure it out.

Note I don't care what any company is 'expecting'they're all expecting good things. The 6 mil in the bank is just otherinvestors cash waiting to be spent on All Blacks and salaries. I'm just simplycomparing valuations, obviously very different companies.

I'm not looking for 'heavy gains' as I'm not 12.My year to date across the whole portfolio (INCLUDING cash) is 40%, but this far exceeds what I willachieve long term. We can all get 'heavy gains' with a few hundred dollars insome penny stock but lets see how you go across a whole portfolio includingcash when it consists of your entire net worth. That is the question.

Now I'm guessing what you're meaning by 'heavygains' are probably a lot higher than 50% but lets assume you mean 50. Which Buffett in his prime could not do... But you probably can, so if you have 100kinvested with the 'heavy gains' in 10 years you will have around 6 million.

But before then you'll be running a lot of seriousmoney in the US as you'll be doing far better than any of the pros.

The very best in the world struggle to do muchover 15% over the long term, there are some exceptions who have done over 20%for 10 years plus but an extremely small handful.

I hope to have a chance at 10 to 15% returnsover the medium term but this will be very difficult to achieve and would meanvery quickly having a multi million $ portfolio.

It's clear that you're going to lose a lot ofmoney and thatÂ’s fine, totally respect that. You can still boast about the heavy gains you've had on a couple of penny stocks.

[SailorRob]

Well if they beat even meet their expectations of $2m revenue in 2021-2022 that is a massive increase in revenue from their interim report, almost 100% at a guess?
then we’d be at about a 15price to sales ratio.. which isn’t madness for the early stages of a company looking at massive growth each year and expanding to international markets.

infrastructure and manufacturing facilities - is this even needed or would this create unnecessary fixed overheads for a small starting out company? Why would they want that when they can outsource their operations and focus on growing sales and creating brand value?!

It’s a bit of a “what if” company and yes we’ve taken a punt, but I’m not risking huge amounts here, plus I’m right into my well-being so I can feel a sense of supporting the company through buying their product which is pretty good by the way.
overseas markets like japan and UK will lap these products up too.

Yes agree with all that. You know exactly what you're getting into and sure it could go way up. I'd take a punt myself if I could get in at the price the others have (ten times lower than here).

I'm not sure any of their products have anything to do with 'well-being' however but as long as people think they do then thats all that matters.

[Averagetrader1]

Being a self righteous smart ass gets you no where.I meant what i said that steady blue chips are a safe and good play. Having some of your portfolio in smaller caps isn't a bad play for those willing to take the risks. Don't know why you're getting so defensive when i specifically asked you other small caps you would recommend then for similar risk reward. Those numbers seem terribly low though. Maybe you should consider an ETF? Not being 12 and all