BLT - Blis Technologies

[Nigel]

When is the AGM? Investors are in desperate need of an update! There's currently a massive overhang of sellers, with very little depth on the buy side at all. I'm always anxious that if one significant seller needs some cash, then the SP could plummet. Ordinarily I'd be looking to those situations to buy some more, but with a real absence of information (ie sales figures) I'd be reluctant to do so at the moment.

[simla]

Hi, Nigel. Still 3 weeks to the AGM. I'm not sure how much new info there can be. We obviously hope to hear more about China, Europe, Japan, America, GRAS, milk powder, dogs maybe, etc. But a surge in sales over just a few months might be a bit hopeful.

Personally I think Blis has reached that "act of faith" moment for investors. If Stratum succeed in reinvigorating sales then we're away. If not, it remains a bit of a struggle. They are the global distributors after all, give or take a bit. But the fun and games of the last couple of years is surely largely off the table: they've had time to get out into the market now and what will the result be in the coming 6 to 12 months?

Some shareholders will be salting away cash for the next issue already announced in the last report, which means people who might otherwise buy are not big on cash maybe. Or maybe they are just doing nothing.

Other investors seem to be taking the safer route of buying shares for 1600 to 1700 times the price in another company! Volume of $1.7m just so far today.

Despite the revenue of the last two years, I remain optimistic. If sales in NZ were replicated overseas we'd be very happy chappies. The central question is what is stopping that happening and is that obstacle being dismantled? We hope that the passage of time and the change of global distributor is dismantling that obstacle. If not, well ... Personally I'm happy to see through another 12 months on the current news. The last couple of years have definitely not been a lot of fun though.

[simla]

An announcement of some significance from Blis this afternoon. Good news/bad news, but looks like more good news than bad. They updated their sales forecast for the year which probably won't disappoint either.

Worth a read definitely.

[Nigel]

An announcement of some significance from Blis this afternoon. Good news/bad news, but looks like more good news than bad. They updated their sales forecast for the year which probably won't disappoint either.

Worth a read definitely.

Where are you seeing this announcement??... all I can see is the date/time for AGM.

[CJ]

Where are you seeing this announcement??... all I can see is the date/time for AGM.

https://www.nzx.com/companies/BLT/announcements/239658
https://www.nzx.com/files/attachments/179674.pdf

[winner69]

Yep ...sales forecast for this financial increased to $1.9 mill

Must have bought another dairy

[Nigel]

Thanks guys. Have had a quick read. Like simla says, some good points, some bad. Someone likes the news, as they've bought $7000 worth. I'm probably a bit more negative - the dilution is pretty severe (a $7m company raising $3m in funding), Edinburgh stumping up only around 8% of the funds isn't the biggest vote of confidence in the world, and more importantly, the developments in milk powder and China still seem very distant. On the plus side, a 60% lift in projected revenue is promising (although time will tell if that eventuates). And still abig overhang on the sell side of the register.

[Nigel]

PS. I'd love to know who bought the $60 parcel of shares this morning. Surely not an insider wanting to make the 0.01 issue price to look better (eg 20% discount rather than just 10%)? Surely not.

[simla]

Well, I'll be interested to hear opinions of that.

Good points: sales growth forecast (1.9m this year, p18; and they apparently expect 68% compounding growth for next 4 years, p23); loss of 1m this year, p17 (but about 600k depreciation/amort last year); will be cashed up; other parties judge the place worth investing in; more than one large shareholder, so large shareholders slowly attracted to Blis?.

Bad points: big dilution again, but shareholders expected to get a bite again soon, at a cost.

Overall: appear to hope for a profit next financial year; will have cash; will be quite a bit of dilution; other parties on board. No fat ladies currently on stage!

Can't see shareholders voting this down despite it being a big move. (Both of those new companies are listed at the government registry: http://www.business.govt.nz/companies)

[simla]

I must say that Blis has the most amazing ability to find new surprises. I didn't see this coming.