Esr 2022 Share Discussion Threads

[milliecusto] 17/2/2021 11:30

Cash does not grow the business by sitting in a a bank

[yump] 17/2/2021 11:22

thirty fifty twenty

Thanks for that - crossed posts.

I presumed they must have spent a lot on marketing, although I guess they'll rely on reviews and word of mouth quite a lot, because customer loyalty will mainly count in x years for each customer, when they buy a new mattress.

So the brand 'word' has to get around, rather than loyalty I think. Branding does cost a mint, but perhaps social chatter will take over.

[thirty fifty twenty] 17/2/2021 11:21

hi Yump

i think you ask a good basic question.
it is important to evaluation what is their break-even point etc...

my conclusion is that there are 2 major factors:
1 - the company has been quite inefficient before and probably still is
(read the last couple of RNS and you'll see that the CEO is talking very confidently re the 'efficiencies achieved on her watch. good news but also shows how poorly it was run before!)
2 - they spend i think c.6m on marketing
thus they could show a profit if they wanted to but are 'investing in the brand'.
this is logical and any brand investment takes years to get traction, and this is the key point for investors to conclude on IMHO. if one thinks that the brand will develop then it is easy to see c.40m sales in 3 years which would prob give c.3m of CSH profits even with 6m spent on marketing. in this scenario it is easy to see a multi-bag price even from 6p as once they reach a critical mass the profits start to grow agressively.

All IMHO, DYOR + BoL
EVE is in my portfolio

[che7win] 17/2/2021 11:10

The cash position is steady, so not burning cash, they are a recovery stock.New management doing a great job.

[yump] 17/2/2021 11:08

You can take this as stock knocking - I know some will, but its a genuine question.

How come they are making losses on a 25mln turnover - is there a legacy of something dragging on the costs ?

If they had a load of different product lines like clothing, I could understand that much increased scale would be needed to be efficient in manufacturing and marketing, but they haven't got many products.

??

[genierub] 17/2/2021 10:56

This is going to go silly. They have partnered with SANA.

Currently in auction.

[sharetips] 17/2/2021 10:54

take profits??
see comment in cityconfidential today
www.cityconfidential.co.uk

[niggle] 17/2/2021 10:28

No, they are simply going to sell a line of CBD oil.

[red5] 17/2/2021 10:24

seriously they are going to put cannabis oil into mattress nice move up though.

[craffert] 17/2/2021 10:12

Just look at the performance of KNB listing for a hint of what could happen at EVE. Kanabo IPO was at 6.5p a share, now 26p (£95mn market cap). Eve £17mn market cap but £8mn of that is cash so the CBD project and everything else is valued at just £9mn...which now makes it the most ridiculously cheap listed exposure point to CBD

[che7win] 17/2/2021 09:58

Someuwin, Cheap at three times the price imho.

[someuwin] 17/2/2021 09:55

£15m valuation - With over £8m of cash!

"Closing net cash at 31 December 2020 of GBP8.3m"

[katsy] 17/2/2021 09:54

why has it gone bananas today, takeover?

[arab3] 17/2/2021 09:52

Chicken dinner still about ?

[effortless cool] 17/2/2021 09:48

Mattresses imbued with cannabis oil - I like the sound of that!

I wonder if they do shareholder discounts?

[tarawalsh44] 17/2/2021 09:45

Getting into the cannabis market ??

[che7win] 17/2/2021 09:45

They're moving into CBD

[effortless cool] 17/2/2021 09:44

Anyone got any idea what's going on here?

[outlawinvestor] 17/2/2021 09:40

Tastes like chicken! Fried chicken!!

[che7win] 17/2/2021 09:20

Rocketing today

[niggle] 16/2/2021 10:39

geeman - of you add a space in front of the link it will post properly

[geemantw] 07/2/2021 16:57

www.similarweb.com/website/evesleep.co.uk/?competitors=evematelas.fr