BLT - Blis Technologies

[winner69]

I think it is intended to be a "clever" title which ambiguously could be applied to the probiotics themselves or to the inference that the people behind Bliss are "good guys". TBH, It is the type of title I would expect to see for a marketing pamphlet.

About as good as the On the edge of glory Edison used on a PEB report last year

On the subject of PEB that Andrew guy apparently did a lot of work for them last year

[simla]

The report makes an interesting point about tax losses, p17. Assuming the tax losses still stand, then they will mean the company does not have to pay taxes on profits, but will not be available for imputation so shareholders will still have to pay tax on dividends anyway. This matches my own understanding that imputation credits are only available for actual cash the company has paid the tax department, which it obviously hasn't done on losses or offset profits.

Yet this still seems pretty weird to me. Yes, the company can use those losses to build up its balance sheet therefore (by not paying tax for a bit) but it doesn't benefit the shareholders in current tax. Anyone able to comment on this oddity?

[GR8DAY]

Hi Simla.........sorry havnt had a chance to fully digest this report yet but on the surface I see it as a positive yet balanced overview of things as they stand......and going forward. It certainly doesnt come across to me as a "paid for" valuation as some are suggesting.........but I'll read on. All in all I detect a tone of valid growing optimism for the company with some potentially huge prospects there for the future (China) ........should things continue to fall into place. In regard the tax losses the bean counters may well decide that any dividend may be increased due to these available tax losses ....so yes us S/Holders could get some benefit depending how they handle it?? Either way, Happy Holder here.

[Harvey Specter]

Yet this still seems pretty weird to me. Yes, the company can use those losses to build up its balance sheet therefore (by not paying tax for a bit) but it doesn't benefit the shareholders in current tax. Anyone able to comment on this oddity?

Correct. But if they do build up a cash surplus (surely they would use for expansion rather than return to SH), then they could do a capital distribution. Can't remember exact rules but distribution needs to be more than 10% of market value and no more than the capital paid into the company to qualify as not subject to tax.

[simla]

Thanks for that.

[GR8DAY]

.......printed report should be in our hands by end of week apparently.......according to some old rocker "there ain't nothing like the real thing baby".....gotta agree with that sentiment.

[NeverQuestion]

The report was called "Backing The Good Guys". I think that must be a reference to the probiotics themselves, and was therefore intended to be a brief statement of the purpose of the business?

Given how many shares are out there would there not be a concern now around share price consolidation?

Did anyone at the meeting ask about this or just happy to not bring up the subject

[huxley]

Given how many shares are out there would there not be a concern now around share price consolidation?

Did anyone at the meeting ask about this or just happy to not bring up the subject

Would this be a big issue? As long as the shares are consolidated for everyone then you'll still have the same stake in the company.

I think I read something about them considering doing this but it would cost something like $30k which would be a poor use of funds at this stage.

[pierre]

Would this be a big issue? As long as the shares are consolidated for everyone then you'll still have the same stake in the company.

I think I read something about them considering doing this but it would cost something like $30k which would be a poor use of funds at this stage.

You're correct Huxley. I asked the question and that was the response. Good to see the company having a responsible attitude to use of its resources.

[artemis]

In the report, the analyst lists quite a few risks. What matters with risks is how they are managed and IMO this should be the #1 focus of management. I'd like to see some evidence of strong mitigation activity.

Risks, summarised. Pretty good list, but nothing about key staff / succession planning I note. :

- Customer concentration
- Failure to successfully implement strategies.
- Changes in regulations or laws.
- Contamination of products.
- Exchange rate risks.
- Liquidity risk.
- Small companies generally carry higher levels of risk.