BLT - Blis Technologies

[tango]

Thanks so much for the summary and your thoughts

* The business is transforming itself from a research-led company into a sales and marketing-led operation.

Long overdue. This has been my ongoing gripe. Great products. Crappy marketing.
Their website and packaging used to look like it was done by the CEO's 10 year old.

* I raised the question of patents due to expire from late this year through to 2026. Brian said the company has no concerns about that and that branding, trademarks, trade secrets and other IP will insulate the company from the impact of potential competition.

I thought this was a great question. I wasn't convinced by the answer.

Did you by any chance chat with him later to ask what they thought the barriers to entry are to stop a competitor jumping on board when patents start expiring at the end of 2020?

[MarineSalvage]

When I’m not on the water I spend a lot of time at international tech transfer conferences, the megatrend is that corporates are outsourcing R&D as much as possible and winding back in house work. Why pay for permanent labs and personnel when you can contract/acquire it in. Even better if it’s a small company that have overcome key technical risk, moves it up Th e TRL numbers and even started selling. When you add in the salaries of USA or euro researchers and an antipodean company is bargain basement. I’m not saying it’s likely but it will never be off the table as an option

What’s your logic on that? Surely the big cosmetic companies already have plenty of opportunities.

Don’t get me wrong, cosmeceuticals are a growth area but many are already doing it and there are plenty of well established ones available. The microbiome is trendy but it would be cheap for a cosmetics company to do a bit of research and simply add a probiotic that has positive research for the skin into a formulation. Just as they all started adding green tea extract, and then pomegranate, etc.

Same with drinks. Most of the meal replacement shakes now add probiotics. Quicker and easier ways to jump on the trends IMO. No NPD needed. Just add in one ingredient. Bam. Done.

Blis doesn’t have name recognition in this market. It’s much easier to have a grad student spend a couple of days on pubmed to come up with the next hot thing and throw it in. It’s the way they all do it these days

[Cadalac123]

Thanks Pierre.

I don't hold BLT anymore, however I was looking to see whether re-entry would be appropriate based on today's report.

I am disappointed by the q1 results, not just because they are a tiny gain over last year, but because there was a clear tailwind that was clearly short-lived .. prior to end of FY20 we had this huge spike in sales and the runrate from that spike was not sustained which was a little discouraging. Especially because ingredient sales were looking juicy.

It looks like there will be some sp spiking announcements in the future, but at the moment it feels all a little speculative. I do think there are potential pipelines for growth, so re-entry could be a possibility in the future.

[fluziosaurus]

Future anticpated growth catalysts:

Launch of Blis branded products into Canada in Nov for sale Dec.

UltraBlis into NZ and amazon

Building of the cross boarder e-commerce platform for china

Skincare Product currently in the late phase of commercialization

[Leftfield]

Tres Bon..... Merci Pierre!!

(that's about the extent of my French!) Great to have your feedback on the meeting. Thank you for taking the time to post such a thorough report.

Can't help thinking Blis shareholders should adopt Tony Balfour's Mainland Cheese advertising tag line - "GOOD THINGS TAKE TIME."

Like Emearg and Tango, I'm a tab concerned by the glib response to the patent and copyright question. I recall at one stage ATM published in their annual report a summary of key patents/copyrights and their expiry.... might be a good idea for BLT. However, we shareholders pay managers to manage and sometimes we have to hope their assurances have teeth. You have certainly raised our concerns and heightened awareness.

Like you I take think that a share consolidation is a 'definite maybe' ( 10:1 sounds about right) and possibly to be linked to a share sale cash raise (akin to ANZ in PEB this week)or a cap raise. Let's hope it is well managed and works to SH advantage like it did with PEB.

China and Canada looking a tab exciting. As to new products, too early to get excited IMHO, it's just 'Business as Usual'.

I still consider BLT a 'hold' and will be adding more on any weakness.

Bon chance!!

[Arthur]

One of the reasons that they have moved more into marketing and diversified their product is to try and protect the market when they come off patent.
It has taken them many years to learn how to get stability and functionality into the product. You don't just snap your fingers and it happens.
The market is so small that it may well be in the "why bother?" category for most potential replicators.
There is no way that most consumers will be able to tell if a competitor has managed to successfully copy them or is just claiming the same benefits at little or no function.
It would have been easy for a large company to have a similar product introduced to the market and say to a cash strapped Blis "take us to court"

[nevchev]

97,000
Also managed FPH sale at $2 so Bliss is to make up the “lost profit”

What did you think pat?Is it worth giving it another couple of years?

[winner69]

Blis need to get an Edison Report done ---- and tell them they want to see a valuation in excess of 20 cents

[MarineSalvage]

Does anyone take a paid for Edison report seriously??

[Leftfield]

Does anyone take a paid for Edison report seriously??

Edison do.......