BLT - Blis Technologies

[simla]

Hey, "anticipate sales to increase materially", China "developments in the 2014 financial year", "milk powder". Have things turned the corner?

[simla]

" The route to market has been determined in China and this will lead to new business developments in the 2014 financial year. "

" A new initiative planned for the 2014 financial year is the further development and manufacture of a nutritional formulation based on blending our branded ingredients with milk powder."

Does that mean manufacture this financial year? Dare we connect these two dots? I certainly hope we hear more in the AGM or, dare I say it, that the ODT manage a comprehensive interview this time.

[Snow Leopard]

Mmmm, arguably this company has turned the corner so many times it is right back where it started.

Best Wishes
Paper Tiger

[CJ]

Mmmm, arguably this company has turned the corner so many times it is right back where it started..

probably more like a maze - turned so many corners but cant find the way out nor where the started!

[Nigel]

Looks like someone tried to start a run around 10:30 buying up to 1.3 on the back of the report. Only brought more sellers out of the woodwork hoping to dump their stock! Ouch!

Well that wasn't the positive update I was after. Simla has mentioned a few glimmers of hope but for me there's nothing substantial (some of it may become significant, but it all sounds some time off). Meanwhile a downturn in revenue and another capital raising on its way.

Lots of support at 0.007 and 0.009 so shouldn't go any lower than that (although those could be famous last words).

[simla]

Okay, here's my bullet summary of the report. Read it yourself obviously. https://nzx.com/files/attachments/175859.pdf

p3.
US sales : 104k, were 10k last half, so resumed to some degree.
Asia & Europe sales: 217k, were 112k to Asia last half, so steady sales, good. "Europe" mentioned for first time in sales figures?
Directors fees reinstated. Fair enough, they took a good haircut and seem to be making progress. Thanks to them for doing it at all.
Better than expected prograss in Europe and Asia
NZ revenue steady apart from Gourmet.

p4.
Cash outflow from operations of 653k
No acquisitions were made!
Preference shares finally off the books.

p5
Neither the FMA nor the NZX has got back to the company.
Last issue noted.
Company wants at least $1m in new issues.
Small shareholder plan apparently still not complete.

p6
No new products on any significant scale last year.
Stratum bought quite a bit of ingredient previous financial year and hasn't needed much since.
Significant progress in products for major international markets. Anticipate ingredient sales to increase materially.
But not significant sales into food ingredients this financial year.
Focus of the company remains to building immediate sales and achieving meaningful sales in China
Happy with where the web strategy is going.
Continued progress in intellectual property.
Animal health currently low priority.
"Personal care" low priority. Is that Q24 for cosmetic use maybe?

p7
Stratum working closely with major supplement manufacturers and consumer product manufacturers, multi-level marketers and companies in the professional channel in key markets.
Seeking licensing partners following Gourmet exercise.
Finding that companies are happy to use finished products to test markets.
Still working with long term companies such as Nestle

p8
Stratum have developed sales and marketing strategies for each geographic market.
Stratum has commenced more regular purchases of ingredients.
Product has continued to be introduced into new territories this year.
Working with Stratum to make sales revenue less lumpy.
Significant rebuilding in the US and new customers.
Developments in Canada.
Strong interest in Europe.
Products in Spain and Germany. Already in Eastern Europe, Russia and Israel.
Milk powder this year it seems? An agreement with an in-market client is expected first half this year.
Pharmabroker have introduced new packaging, and blister pack this winter.
Stirrings in Australia but require regulatory work.

p9
Web sales significant and growing. (Well done!)
Have a web-based marketing strategy.
Sales and marketing strategy being finalised in China and with a view to more companies.
[I didn't see a repeat of the sentence in the press release, but it may have been there. "The route to market has been determined in China and this will lead to new business developments in the 2014 financial year. "]
Larger products underway in Japan but takes time. Important product launch again expected "this financial year" (said the same last year I think)
Changed partners in Korea?
Products in Taiwan, Singapore and Pakistan.
Other projects in India and Pakistan.
Probiotics still made in NZ, but tablets being finished overseas too.
Intends to manufacture nutritional products at its own facilities for some customers, currently preparing, details to be announced. (What is this?)
GRAS and Europe will have a profound impact on the company.
Progressing full GRAS for K12 in US.

p10
Seeking self-affirmed GRAS for M18, need some guidance presently.
Continuing to generate trade secrets.
Continuing to support customers with technical knowledge.
Working on Malaysia area.
Working on yoghurt.
Pet trials were encouraging.
Examining childhood pneumonia.

p11
Successful clinical trial on "dental caries indicators" on children with M18. Ongoing research.

"Remains confident on the right path"
"Our partners have invested considerable funds ... and share our expectation for achieving commercial sales volumes in the near future"

p40
The Directors believe the going concern assumption is valid. ... but [usual disclaimers about future sales]

[simla]

I really can't see what you guys are seeing. That was quite a bit more positive than I was expecting. It had a sense of purpose about it again, a sense of finally engaging. They mentioned plans of "formulators and distributors to launch products ... in major international markets" and anticipating "ingredient sales to increase materially". The suggestion was that China is almost ready to roll surely. And milk powder agreement to be signed shortly is hardly small news, is it?

We've been very nervous for about two years while revenues were churning water. The last revenues were no better, but surely the company is signalling strongly that they see change coming? And if so, then what the heck else are we waiting for, as everything else is looking pretty rosy, no?

Pity about the issue, sure, but that is a result of last year not next. I was wondering what confidence I would go into that with, but this report has pretty well dispelled my own doubts there.

What report were you guys reading?

[simla]

Looks like someone tried to start a run around 10:30 buying up to 1.3 on the back of the report. Only brought more sellers out of the woodwork hoping to dump their stock! Ouch!

Sometimes a spade is just a spade! No run is necessary if I'm right in my reading of that report. My feeling is that we have finally arrived at a time of a steadily increasing share price from here on in as the company finally engages in steady sales increases. Hope I'm right.

[simla]

I'm pretty chuffed, actually.

[simla]

As I say, I don't know what report you guys were reading. I have one main skill: pattern recognition. For the last two years, patterns have been pretty confusing for Blis. But now I am seeing a cohesive across-the-board strategy in play again, and with some quite concrete signs of progress on that strategy. It really does seem mainly to have been about changing distributors as they said, and the new distributor seems to be getting some traction now.

Can't believe you guys don't think the milk powder thing matters either.