BLT - Blis Technologies

[patrick]

I think about $40m; should cover the next two years!

[forest]

Thanks SausageDog ...you’re my man

Don’t forget Blis market cap is nearly $100m ....that’s very high.

Winner you right, very high. roughly 10 times revenue.

Let's compare with another company not everybody saw the value when it was a small cap ATM.

ATM revenue 12 months to Dec 19 (2H19 plus 1H20) app $1.4b.
ATM market cap App $14.3b so very close to BLT 10 revenue.

Now which company is likely to grow its revenue faster?

Maybe just maybe there is hidden value in BLT.

[Leftfield]

Winner you right, very high. roughly 10 times revenue.

Let's compare with another company not everybody saw the value when it was a small cap ATM.

ATM revenue 12 months to Dec 19 (2H19 plus 1H20) app $1.4b.
ATM market cap App $14.3b so very close to BLT 10 revenue.

Now which company is likely to grow its revenue faster?

Maybe just maybe there is hidden value in BLT.

Interesting debate....

If you check back on various forum posts of almost any successful company, at some early stage you will find that there were posters here who thought the SP was 'overpriced' versus the fundamentals. ATM, XRO, FPH all spring to mind where there is still debate on this.

The current SP of any company is merely a reflection of the market's pessimism or optimism for a company's future earnings potential.

I suspect BLT's SP is being driven by an expectation that its pro-biotic remedies for throat infections and oral hygiene will gain considerable market acceptance and sales in these covid-19 times. We'll get an indication of the validity of these expectations in the next results.

In the face of SP uncertainty a good strategy could be to nibble at a holding via small chunks over time and benefit from Dollar Cost Averaging to mitigate risk. JMHO.

Disc - holding.

[Airw0lf]

Interesting debate....

If you check back on various forum posts of almost any successful company, at some early stage you will find that there were posters here who thought the SP was 'overpriced' versus the fundamentals. ATM, XRO, FPH all spring to mind where there is still debate on this.

Yes this is true. And maybe I am dwelling too much on this particular point, but the fact that BLT actually now does make a profit is a good sign for me. There have been a number of other companies that have been (rightly or wrongly) hyped and taken a long time to get to profitability, if ever. I guess you could argue whether the profits will now grow as per what the market price implies but at least this doesn't strike me as the kind of company that will come to us anytime soon cap in hand for a capital raise to stay alive...

[percy]

Yes this is true. And maybe I am dwelling too much on this particular point, but the fact that BLT actually now does make a profit is a good sign for me. There have been a number of other companies that have been (rightly or wrongly) hyped and taken a long time to get to profitability, if ever. I guess you could argue whether the profits will now grow as per what the market price implies but at least this doesn't strike me as the kind of company that will come to us anytime soon cap in hand for a capital raise to stay alive...

Hindsight is easy.
Foresight is more difficult.
Recently reviewed two Aussie stocks which did nothing for the 2 years I held them.
The catalyst for them to take off was my selling.
So my foresight was right and my hindsight wrong.Can that be right,?,,,lol.

[Leftfield]

Yes this is true. And maybe I am dwelling too much on this particular point, but the fact that BLT actually now does make a profit is a good sign for me. There have been a number of other companies that have been (rightly or wrongly) hyped and taken a long time to get to profitability, if ever. I guess you could argue whether the profits will now grow as per what the market price implies but at least this doesn't strike me as the kind of company that will come to us anytime soon cap in hand for a capital raise to stay alive...

Agree.

Investing in small cap companies that are emerging from non-profitability to profitability is a strategy that many recommend (just look at what it has done for PLX for example)

With BLT my biggest concern is the current management. I'm not confident that they have the vision required to make BLT an international success but hope they prove me wrong.

[pierre]

With BLT my biggest concern is the current management. I'm not confident that they have the vision required to make BLT an international success but hope they prove me wrong.

What makes you say that Leftfield?

https://www.linkedin.com/in/brian-watson-3b42203b

[forest]

Agree.

Investing in small cap companies that are emerging from non-profitability to profitability is a strategy that many recommend (just look at what it has done for PLX for example)

With BLT my biggest concern is the current management. I'm not confident that they have the vision required to make BLT an international success but hope they prove me wrong.

Hmm, the last few years BLT had a total new management team and also replacement of all the directors.
The only exception is independent director Barry Richardson who had been a director previously, left and then came back in Aug 2018. Presumably because he liked the new direction the company is taken.

This has indeed been a company which was going nowhere for a very long time.
However it seems to me things are changing.

[Leftfield]

What makes you say that Leftfield?

https://www.linkedin.com/in/brian-watson-3b42203b

No complaints with Brian. However my concern is simply lack of info' on BLT's vision for the future and I'm not yet convinced of the strength of the team.

I would just like to hear a bit more from BLT on this as well as some evidence of success. They seem to be doing well in Nth America (sales up 126%) etc but I would like to hear more about other markets, China, Korea, Japan etc. The last report simply said;

"There is a deliberate weighting of investment into new markets in the second half of the financial year with a focus on developing a China cross-border eCommerce sales channel and planning for a launch of the BLIS range into the Canadian market."

I'll be watching their next report particularly revenue projections with interest and as I say I hope they prove me wrong.

[winner69]

What makes you say that Leftfield?

https://www.linkedin.com/in/brian-watson-3b42203b

Seems like he hangs around an organisation for 5 years or so and then moves on to another ‘challenge’

Mind you had plenty of different roles in his time at Fonterra

How long has he been at Blis?