TIL - Trilogy [formerly ECO - Ecoya]

[JohnnyTheHorse]

Watching the charts closely here. Getting close to the point indicating reversal of the downtrend.

These dual listed companies usually go gangbusters once ASX opens. Oh wait, the ASX listing was a flop.

[trader_jackson]

Interesting acquisition, remember last time they brought that other thing and I wonder what happened to the share price after that 'bargain' SPP given to shareholders? Also found it interesting how they paid all cash for it... if management (of Lanocorp) were so confident, you'd think they'd only be to happy to take at least some shares in the 'heavily undervalued' TIL? (did I read it wrong?)

Ah well, time will tell how good this acquisition is, certainly made all the right noises, using bigly words like diversity and exposure. The jump in share price today means it is now just over half way to where it was this time last year .

[winner69]

Interesting acquisition, remember last time they brought that other thing and I wonder what happened to the share price after that 'bargain' SPP given to shareholders? Also found it interesting how they paid all cash for it... if management (of Lanocorp) were so confident, you'd think they'd only be to happy to take at least some shares in the 'heavily undervalued' TIL? (did I read it wrong?)

Ah well, time will tell how good this acquisition is, certainly made all the right noises, using bigly words like diversity and exposure. The jump in share price today means it is now just over half way to where it was this time last year .

It's EP accretive t_j

But share price shot up by more than the accretive bit - punters obviously think that strategically this is a very good acquisition.

At least Mr McIver will be happy

[silverblizzard888]

Breaking the announcement down I think Trilogy have performed a masterstroke.

Trilogy is buying establish brands with history.
"New Zealand business that was founded over 25 years ago in Christchurch"
Lanocreme product since 1959

New sales channel and markets opened
Lanocorp sells products in a lot of sovineir stores and wider chain of supermarkets and goods stores.
They also established in US, UK and Canada in other platforms. Those who are familiar with Lanocreme will know that it can prove to be a big hit in Asia.

More economies of scale
"3,200sqm purpose built manufacturing facility in Rolleston", which will be more efficient with more volume.

Diverse product range
Trilogy can now sell a much more diverse product range that include products that have rosehip oil, chia seed, honey, coconut oil, Bee Venom, sheeps placenta ......and so on. Lanocorp also sells a cheap version of rosehip oil so its a way to his the market with a cheaper alternative and keeping Trilogy as the premium. The product range is bigger too now as they now sell in the skincare, bodycare and haircare brands.

Room for growth
With more access to other sales channel they can sell in more places and with Trilogy's store local distribution Lanocorp who has only established a early base in NZ can grow much more quicker.

[kizame]

Breaking the announcement down I think Trilogy have performed a masterstroke.

Trilogy is buying establish brands with history.
"New Zealand business that was founded over 25 years ago in Christchurch"
Lanocreme product since 1959

New sales channel and markets opened
Lanocorp sells products in a lot of sovineir stores and wider chain of supermarkets and goods stores.
They also established in US, UK and Canada in other platforms. Those who are familiar with Lanocreme will know that it can prove to be a big hit in Asia.

More economies of scale
"3,200sqm purpose built manufacturing facility in Rolleston", which will be more efficient with more volume.

Diverse product range
Trilogy can now sell a much more diverse product range from rosehip oil, chia seed, honey, coconut oil, Bee Venom, sheeps placenta ......and so on. Lanocorp also sells a cheap version of rosehip oil so its a way to his the market with a cheaper alternative and keeping Trilogy as the premium. The product range is bigger too now as they now sell in the skincare, bodycare and haircare brands.

Room for growth
With more access to other sales channel they can sell in more places and with Trilogy's store local distribution Lanocorp who has only established a early base in NZ can grow much more quicker.

It may be the manufacturing plant that is the attraction in this deal,I'm not sure whether til have a plant themselves or whether this is contracted out,but to get that plant humming efficiently with more product...

[JohnnyTheHorse]

If it can close above 230 then that'll be confirmation of an upward breakout from the falling wedge (along with other indicators pinging off) - 320 target price.

[boysy]

Great to see the buy sell depth change on this announcement. BWX closing on $6 just goes to show where til can be if they start making waves in china

[silverblizzard888]

This announcement gives the company more direction and the share market loves it, before that there was a bit of uncertainty that no one wanted to be a holder.

[carrom74]

STers comments usually a good judge

This acquisition unanimously (except for one part detractor) seen as a very good for TIL

So positive for share price - back to 330 this week as a start

I still believed that the price drop ex div was just an aberration. After listening to the CEO's interview on NBR,my faith improved....Still about 20c(roughly) down from 100 SMA...Lets see winner69 whether 330 is possible near term...fingers crossed..

[winner69]

Well on way to 330 now

Good divie eh couta - well done - well timed (assuming you haven't sold yet)