BLT - Blis Technologies

[GTM 3442]

page 2 of this thread from 2007 . . . where is the profit?
EVERY SINGLE YEAR from first listing they have said they will be profitable next year.
and here we go again. . . .

A quick question Neopole - has it been the same reason "every single next year" when they haven't been profitable ?

Do they constantly sell below targetted margin, sell below budgeted volume, blow out manufacturing costs, overrun the marketing budget, or whatever ?

Or mix'n'match these with other reasons/excuses ?

[Nigel]

A quick question Neopole - has it been the same reason "every single next year" when they haven't been profitable ?

Do they constantly sell below targetted margin, sell below budgeted volume, blow out manufacturing costs, overrun the marketing budget, or whatever ?

Or mix'n'match these with other reasons/excuses ?

Hey maybe it's just my dodgy memory, but I don't remember promises of profitability every year. There were often quite upbeat reports talking about how we were close to regulatory approvals or talking to suppliers or getting the product into new markets/stores, but I don't recall constant promises if profitability.

One of the key differences of Blis now to Blis 3 years ago is that now some well-monied, well-connected third parties have taken equity stakes in the company and are helping move things along. I think this will be the catalyst for taking what had always been awesome science, and nailing the commercialisation aspect which (even though it has made progress in recent years) has never taken off.

I wasn't excited that the headline revenue number was only up 24% although I note that this would be much higher if BFF revenues from the previous period were excluded and if development costs were capitalised instead if expensed as they were last time.

I wasn't excited about the prospect if the annual loss only reducing by a third - that's still a sizable loss.

And he wording along the lines if 'profitable operations in FY15' doesn't leave me certain that they will actually post a profit that year.

Failure to fire in the US market is disappointing but looks like whatever market access issue they had is largely resolved now.

On the positive side, NZ revenue was up 158%. A successful capital raising has massively strengthened the balance sheet and they now have new marketing alliances with well-networked groups who each have 'skin in the game'. Their new plant will be exporting soon and revenue growth will follow. Good to see more studies underway too.

The share price took a bit of punishment yesterday and may continue to fall back a touch, but it will also respond well to future announcements about China progress. I'm expecting something to come out about Sinopharm and these Chinese strategy (could be wrong but surely they'll want to tell us how well it went). This could be what we need to get the next decent price movement (in the right direction).

Good luck to all holders.

[simla]

Blis's strategy for the last 6 years has been based on their not having enough resources to go out and conquer the world alone. The plan was hatched to sell market sectors in return for the other companies to do the marketing. NZ sales have grown and grown (that Blis have influence over) thus proving the model is quite workable.

Since very nearly the start of this strategy (which you notice is also the time of the GFC, not an ideal backdrop!) almost the entire world has simultaneously created massive legal barriers to selling probiotics. Frankly this is bizarre in its heavy-handedness (in Europe, almost none of the large firms can now make any claims at all, much anger) and seems to coincide with attempts to limit the supplements industry as a whole, which is in line with a clamp down on all sorts of consumer "eaten" products like additives etc.

This clampdown has caused Blis huge problems and expense in two ways. Firstly, it is hard in most countries to legally claim your supplements actually do anything at all. Talk about helping consumers! So Blis has had to work very carefully to pick up consumer awareness in much slower and harder ways. Do not underestimate the difficulty this produces with advertising. Secondly, Blis always said food based product (yoghurt, beverages etc) were always going to be the king-hit markets. But gaining permission for these has taken years, and cost, and Blis is now just gaining access to that market. They brought out an ice cream in NZ that sold very well last/this year, but did not want to spend a lot of money competing on reducing ice cream production costs (see WDT for example of how expensive that is) when a high-fat ice cream presumably struck them as the weaker end of the market for supplements. I assume they opened with that because it was an easy test partner they had available in Dunedin. Recently they invested in other plant instead, the exact use of which is not yet clear to us, but appears maybe to be yoghurt or yoghurt powders, who knows.

Additionally, they had a global distributor to help find the various world-wide commercial customers they needed. Blis decided a couple of years ago (or more) to swallow the cost and difficulty of changing that distributor, presumably as they felt the result would pay off later. It has however involved a couple of years of tight times at Blis. I have anecdotally heard that changing distributor is very common with startups as it is common to find the initial distributor did not really believe how much growth was intended, or maybe just aren't geared for that sort of scale - and that the changeover is usually hard every time. But who knows what was the case here. Blis have understandably said little about the process publicly so we had a difficult time as shareholders for a couple of years in understanding what was happening.

And do not underestimate the difficulty, time and cost of developing the technology to include Blis products in the food.

As we understand the situation now, those problems appear to have largely been put behind the company. The new distributor appears to be bringing sales on line. And food sales look like they will come on line soon too, after much progress in legal permissions and technological prowess. And most food regulations DO allow advertising of the properties of the probiotics to some extent (as I read it, anyway). And happily, the company is also not talking about having any other problems as far as I can see.

All of which is just my understanding, naturally.

Which is why quite a few of us are now hopeful. Others understandably take the view that any explanation that long and complicated is obviously a desire to see things that aren't really there! We'll see.

[simla]

I would add, however, that NZ seems to be coming to understand that it takes time to launch companies. BLT (2001) is starting to look good. PEB (2001) seem to be getting out to market. WDT (1986!) seems to be coming right now. ATM (2000) has just started making profits. Even XRO was 2006 and has yet to profit. DIL started on Boardbooks in 2000 and only recently toook off.

There just seems to be a period of years during which work is necessary and during which the school of hard knocks seems to be required too.

[GR8DAY]

http://www.radionz.co.nz/audio/player/2576843


.....if anyone has any doubts over the current and future applications for Blis' Technology, you might want to have a CAREFUL listen to this. Just another small reminder of what this little company is all about and the profound impact that the "over-prescription" of antibiotics is already having on the human race. Blis products may well be an answer (if not THE answer) to this growing issue of pan-resistant bacteria, as evidenced by our first fatality, caused by a "SUPERBUG"........and they talk of another possible case. This is very scary stuff and I personally stand firmly behind this company, Professor Tagg and his dedicated team. What the SP does or doesnt do, really becomes incidental when considering the broader implications to this "specie-threatening" problem and Im glad to be part of such an ethical, exciting and cutting-edge company.......it has all the INGREDIENTS I look for.......not to mention phenominal commercial potential should our worst nightmares come to fruition......and worryingly this could be happening right now.

[Nigel]

Thanks for the link Gr8day. I'm not a medical guru so forgive my ignorance... but how would taking BLIS save someone from the perils of a superbug? Is it just the 'crowding out bad stuff with good stuff' argument? Or is there more to it?

[GR8DAY]

........hi Nigel and I dont profess to be a medical guru either (in fact probably as ignorant as you.....with all due respect) but yes my understanding (or lack of) is that by strengthening our own GOOD bacteria (accounting for about 70% of bacteria) by taking Blis, we naturally improve our chances of "crowding out" the bad bacteria (as you put it)....BUT i guess the real strength with Blis lies in the "preventive" applications ie actually avoiding the use of antibiotics in the first place?? Im trying to understand it all better myself so welcome further input in this regard. Lets throw this open for discussion because I really do think the whole thing (including the business model) is going to be huge.

[clip]

that you in there with an ask at 1.6 moosie? :P

[Rego55]

Thanks for the link there Gr8day. I'm a new entrant to the share market having only really started trying to put together my own portfolio in the last month or so. I've read a lot of commentary on Blis with great interest. John Tagg was my lecturer when I studied for a zoology degree at Otago in the mid to late '90s. I took a few papers in microbiology and one or two pre-med papers. Professor Tagg was, without doubt, the lecturer that had the most profound effect on me and I remember him vividly. I assisted with Blis as did all of his students who agreed to take oral swabs to before/after taking the Blis formula. At least, I think that's how it worked - it was a long time ago. Anyway, I remember thinking back then that it seemed revolutionary and am proud to be a shareholder now. You're right to point out also, that investing in Blis goes beyond just looking for a monetary return - what they do could be very important for us as humans. The gentleman who died the other day after coming back from Vietnam is a terrifying example of what can happen.

[GR8DAY]

After having a talk with Croesus (good to meet you mate!) and doing some homework I will be looking to actively buy below 2 cents (won't say exactly what price though). this will be a buy and hold as well, not trading, on the assmption the company can turn around here. will notify all when I start buying so you can all start selling on my contrary indications

.....FINALLY!!!........welcome aboard Moosie as a "believer".......now go put that clever young brain of yours to good use and start reading (and sharing) any info you can on this technology and its applications. I too was a trader for a while but now have every intent on holding and following with interest all future developments attached to BLIS......I honestly believe this could become bigger than TEXAS!! ps......good luck trying to pick up shares under 2c, but I dont think you will be alone !!