Innovaderma Share Discussion Threads

[che7win] 28/2/2017 14:11

Has anyone seen the shelf space in Superdrug increase for Skinny Tan?

I'm puzzled, in the Belfast branch its decreased with Rimmel, St Tropez all getting more exposure. St Tropez gets an isle top to bottom (5 shelves), ST gets one shelf.

[ny boy] 28/2/2017 13:50

Yawn, wake me up when this starts closing above 163.50p, I'll be a buyer then, not at these levels, kind of Nomans land

[che7win] 28/2/2017 10:14

Generally,
retailing has become much more difficult, to the point where the public buy very little without a sale promotion.

The experts say that retail goods are on sale too often, the public perceives that the product is too expensive in the first place.

Very difficult to balance this - good research Cros.

I'd like to know most about the purchase yesterday - what debt, what sales, its earnings enhancing but without sales figures its relative, IDP can bolt this in relatively cheaply I would think.

[nw99] 28/2/2017 10:04

Croas excellent work thank you

[luminoso] 28/2/2017 09:20

Croasdalefc - Thanks for that info. you have done some great research over the past few months on here and I really appreciate that. You may well be right that they are doing some serious cash generation at the moment. I need a bit more clarity from the company, basically.

[croasdalelfc] 28/2/2017 07:51

Luminso - I think StevieK and C+L are very very new, in fact only one range has been produced. The lipsticks have sold very well but I suspect there was only one production run. I think KF needs innovodermas markets and DTC and Social media knowhow.On the SK website in FAQ - it states they intend to produce a full range, for lips, eyes, face, skin etc. It wasn't done as the money wasn't there.The DTC produces instant cash for ST which can pay for production of the SK range - leaving KF to do design etc.For example, each week on the UK ST website they change the special offer. On sat I observed them selling 200 units at £30 in a few hours.That special offer was withdrawn yesterday.Yesterday evening and this morning they have sold 200 of the latest special. Plus all the offer products plus Superdrug etc.My guess is that the DTC selling brings in about £10k a day or £3.6 m a year minimum.

[luminoso] 27/2/2017 16:52

I like it, but I would like it a lot more, if I knew the details and saw a clear plan to fund growth in both ST and the Fissenden brands. It could become very exciting when that is clear.

[csmwssk12hu] 27/2/2017 16:51

It's a bargain whichever way you look at it, the detail is waning enhancing in the last quarter of this year, my money's on earning enhancing in the next full quarter, that's your upside imho dyor

[nw99] 27/2/2017 16:47

The market likes it that's very important

[luminoso] 27/2/2017 16:29

Regarding the acquisition price, 50,000 Aussie dollars, it is possible that the acquisition was similar to that of Skinny Tan. If you look at page 160 of the Innovaderma Prospectus document, you see the way that cash price was worked out. It includes under a heading of 'Recognised fair value of assets acquired and liabilities assumed' - Trade and other payables of 240,373 a$ and Borrowings of 247,520 a$. So real cost of ST was over half a million. We could do with knowing how this purchase price was worked out for StevieK etc brands. On the face of it, it looks ridiculously cheap for fast selling brands, so is there debt and payables being assumed here too ?
If so, it has implications on the current cash position.

[nw99] 27/2/2017 14:29

We are doing well in Superdrug already so maybe that's the plan

[mad foetus] 27/2/2017 14:02

I wonder whether the new director who came from Superdrug is involved in the thinking behind these acquisitions. It may be that it is easy to launch products in this sector and create a social media buzz, but hard to go from winning awards and getting a write up in fashion blogs to being a high street brand. Perhaps the thinking is that if you acquire a number of niche brands it gives you the ability to sell new products into existing relationships: if it enables the new brands to get into Superdrug or ST to get into Urban Outfitters then surely it is a win win.

[croasdalelfc] 27/2/2017 13:37

It's a small bolt on with the opportunities for synergies and to grow the brands. It's dirt cheap at £30k or shares and they will sell via social media just like ST. I think the last company presentation said they get £4 in revenue for every £1 spent in marketing. They can use the same addresses to ship the products and can roll out in U.K. And US.To me it looks like Kate Fissenden launched her brands about 12 months ago - has sold well but hasn't got the size to product a bigger range or restock.

[nw99] 27/2/2017 12:29

Existing news priced in maybe but not new news . Onwards and Upwards

[thelung] 27/2/2017 11:24

I think you're all talking your own book. ATB

[che7win] 27/2/2017 11:21

I think Trader Tim is spot on this morning, his last line is fair.

[kemche] 27/2/2017 11:17

NY - it's all just too terrible for words!


Sheesh!

[king kong dong] 27/2/2017 11:15

Potentially....but not guaranteed until the company spill the beans.

[ny boy] 27/2/2017 11:06

More debt to service then

[king kong dong] 27/2/2017 10:57

I think what wasn't said was the company debt (if any) that comes with these brands....probably why it was picked up on the cheap.

[ny boy] 27/2/2017 10:53

To build these two brands just means more cash, which means another placing, this is why the share price has fallen back from a promising start, growing Companies require lots of cash.

[thelung] 27/2/2017 10:50

Were you of the same opinion when they picked up Skinny Tan for the same price?

[ny boy] 27/2/2017 10:48

How come if these brands are so good Skinny could pick up these two for AUS$50k, this is trivial news surely? Was expecting some with more substance.

[anusol] 27/2/2017 10:09

Ready made products ripe for U.K. And US markets. Reassures me of a long term sit and hold strategy.