Certainly not for the faint hearted. Valuation pretty reasonable now if we assume guidance is met and the potential one-offs aren't one-offs.
Regarding the "organic fad" - it doesn't take much scientific knowledge to get a feeling that organic products are better for you. Pumping yourself full of synthetic chemicals just doesn't feel like a particularly good idea. I'd be more worried about rosehip falling out of favour for another natural product
Well, looks like the ASX listing was a fad ... as they often are.
It always can go lower (but never below NIL). Depends just on your assumptions of how to value the company.
If we assume the growth phase is over and the companies revenue is plateauing from here, than the share would be worth something like $2 (at a PE of roughly 10);
If we assume that the market will shift next year to the next hyped up fad and drops TIL products ... than the SP is obviously worth less than that.
I don't know what scents our better half's are preferring next year, but what is sure is that what goes up must come down - question is just, when. Difficult to determine the long term fundamentals of a growth company which just came into fashion ...
Last edited by BlackPeter; 01-11-2016 at 10:01 AM.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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