MFB - My Food Bag

[Getty]

A big day for many.

Stage managed finish I would suggest at $1.74, but the VWAP at $1.7039 b4 that does not lie.

$8.21M has been consumed by new buyers , @ 8% discount overall.

Was it a special, or a clearance?

Next week will confirm.

Dont go hungry in the meantime.

[Blendy]

I'm slightly concerned what effect it might have on the most passionate customers. MFB worked pretty hard to get customers to buy in. Now they're underwater by about 10%. How passionate are these customers going to be now after being sold cold leftovers instead of haute cuisine?

Yes I agree - there has been a pretty good campaign to attract people who may never have invested in shares before to participate in this IPO and own part of a business they know and trust.

For many people their first day of being an investor = OMG I'll never do this again. While it's extremely common to not instantly make a profit on shares you just bought, not having the support of the market and losing money is rather bad PR for a household brand, and MFB will need to do something to restore the trust of their own customers who are now also shareholders.

Disclosure: reluctant shareholder, devoted customer

[nztx]

What's the thesis?

Easily replicated business with no growth prospects. I guess they could screw suppliers a little more but there is only so much blood you can get from a potato. Maybe they can differentiate via their recipes (jokes). Aside from that, this is going the way it was always going to go. This is about the owners cashing up and getting out.

Agree with you there ..

[Beagle]

Old mutton dressed / priced up like fresh spring lamb. It will leave a bad and dry taste in consumers mouths as they will feel duped after being urged time and again to "tuck in". Little did they realise that they were the ones on the menu and are ostensibly like lambs to the slaughter...

[nztx]

See whether the >5%'ers line-wipe the asks at close to finish on IPO price. If they thought $1.80 was good, then current price must be a steal.

be a few wondering why they bothered with IPO allocations & the rest of the hyped up nonsense on what
the first day out of the stall onto the track has seen ..

[Beagle]

What's the thesis?

Easily replicated business with no growth prospects. I guess they could screw suppliers a little more but there is only so much blood you can get from a potato. Maybe they can differentiate via their recipes (jokes). Aside from that, this is going the way it was always going to go. This is about the owners cashing up and getting out.

+1 but priced like it was a high growth company. I am surprised that some old hands on here were duped so easily.

[nztx]

What realistic opportunities are there for cutting cost of direct produce & ingredients are there ?

Produce seasonal - price fluctuates - many perishable lines with limited chiller use by date

Meat & other products - in many instances wholesale price is market driven as well ..

Aside from volume discounts / and possibly a bit of customer shafting on content volume in the bag
doing things a bit better - is potential for raw ingredient costs coming in even possible ?

Okay of course if the job wasn't being done efficiently in the first place .. maybe ..

Those in the tucker game will have some ideas on this I guess..

[Balance]

My Food Bag a great little company. It will continue to perform solidly financially - like consistently making around $20m (and a bit more) profit in the next few years.

That's pretty good eh

But going public how good the company is will be dependent on the share price.

With all the IPO hype consistently making about $20m wont be good enough and My Food Bag will be seen as a dog of a company - useless at evrything it does and similar such comments will be thrown around.

Beauty is in the eye of the beholder - but I think it sad that even though little will have changed how they satisfy customers on a day to day basis they can one day seen as a solid little company and the next a dog.

Happened to Metro Glass. If you take out the Australian acquisition that he money men forced them to do and look at the NZ business it on a day to day basis has been chugging along nicely since IPO (even has some profitability measures that global peers envy) but in the eyes of most it is seen as dog of a company because of its share price - a hopeless one etc etc

Being private is good - being in the headlights of the money men and greedy retail shareholders is a different story.

I feel sorry for those who work at My Food Bag - their little company will never be seen the same again - and those workers have been seduced with shares as well

Sadly, W69’s accurate take before he got seduced by the hype.

[nztx]

+1 but priced like it was a high growth company. I am surprised that some old hands on here were duped so easily.

the effective SP certainly saw some high effective growth .. well for founders & up to time IPO mutterings were on the table ..

the Gattung & Fund's stakes for beneficial / Retirement / Greedy interests yielded some very some substantial growth..

Will that do ?

If it doesn't fly - will they be as fast to reimburse, if for example the new investor serf class onboard aren't happy
with things, or will it take throwing a class action or two & large paper bag at them to sort it out ?

[moimoi]

Blendy, as you know..It's extremely common to instantly make a profit on shares on day 1 of IPO'd shares in other markets..

NZ with its tiny capital markets, with very few significant entities prepared to come to market, appears to have listing brokers primarily operating on behalf of the vendor of the securities....IMO.