SVR - Savor Ltd (Formerly MOA)

[Harvey Specter]

Can one of you accountants please explain how a company can fail to include 'marketing and sales costs' under cost of sales?

I assume they are actually referring to 'cost of GOODS sold' which in their case would be all the raw inputs, including labour to get a bottle of beer. Sales and marketing then get subtracted followed by Admin and overheads.

[silverblizzard888]

Can one of you accountants please explain how a company can fail to include 'marketing and sales costs' under cost of sales?

Yes Harvey is right, cost of sale only is meant to include the cost of making the final product, which generally in accounting should not include any other cost. Say cost to deliver the product, to market it are separate. I guess the words cost of sale are slightly misleading, but hope that gives clarity regarding it.

And thanks for the heads up on the new brewery crowd funding Harvey, will try to get a hold of their products and see if they might be a good investment. Have you tried their products? Any thoughts on the products?

[JohnnyTheHorse]

And thanks for the heads up on the new brewery crowd funding Harvey, will try to get a hold of their products and see if they might be a good investment. Have you tried their products? Any thoughts on the products?

Very good beer and run by very good people. Be sure to try their Craftsman. Unlike Moa, I suspect their marketing costs are very low, as they let their beer do the talking and win many awards.

As for the Moa results... well it's all totally expected. Capital raising is definitely on the way soon. They are going to have to issue at least 1/3rd more shares and I don't think people are going to be willing to pay much for them (sub 50c I suspect). They also have a new plant that they will have to pay for (~$5 million), so maybe expect a bigger dilution. As for the sales numbers, look at the COS/Revenue ratio. Like I have been saying, it's very obvious that they have only been able to sell so much more because they are selling it for so cheap to make the "growth" look good. All other expenses are growing faster than revenue too, so not a good look.

Stay away from MOA.

[vorno]

If I had the choice of pretty much any other craft beer I would most likely choose it over Moa. As a beer, its a nice beer but nothing to rave over I find.
With the on-set of other brewers which are better hands-down e.g. Renaissance brewery - I cannot see Moa standing up to them.

[sommelier]

Yea, though for $23.99 for a dozen moa lager at the supermarket at the moment, what would you buy at that price point? They talk about competing wiht craft beer, but we all know that's rubbish. Though the 5-hop is pretty awesome. In Wellington, most bars and restaurants don't sell a lot of 'true craft' beer, there are some good beer bars, but the bars with more corporate-y clientelle are still being shifted from Heineken and Steinlager Pure. The purchase of emersons by Lion has lead to some Emersons at lots of big bars in WGTN and AKL. Moa fits somewhere in the middle here. They certainly aren't craft (though they are attacking the market at all angles). They are a 'kiwi premium' beer. The question is whether they can scale up quickly enough to be profitable at this level.

[arnies]

Despite me talking them up earlier this year, i jumped out shortly after their results came out yesterday. $6m loss with only $4m left in the bank. So short-mid term chance of making any money, and a 'letter' from key investors isn't enough for me to have any confindence.

[bull....]

still not interested

[silu]

It amazes me how many people don't buy their beer based on their advertising campaign. Still all those little things matter.

discl. don't hold

[silu]

http://www.nzherald.co.nz/business/n...ectid=11263313

Sharebroker Forsyth Barr has downgraded its view on Moa Group, saying the company is an "unappetising investment case" and is expected to burn through its remaining cash reserves over the next 12 months, which may lead to a capital raising.

[Harvey Specter]

http://www.nzherald.co.nz/business/n...ectid=11263313

Sharebroker Forsyth Barr has downgraded its view on Moa Group, saying the company is an "unappetising investment case" and is expected to burn through its remaining cash reserves over the next 12 months, which may lead to a capital raising.

The disappoint thing about this is that ForBarr didn't already have them on that rating. It was always going to underperform until they got traction (which they haven't), they only have to look at 42Below or Trilogy.