Australia's largest stock trading and investment forum Australia's #1 stock forum

CLB

Click for more information

0.00%

4.6¢ candy club holdings limited

Ann: Business Operations Update, page-6

First 6 Last

Share
Profile

Follow
sle

10,818 Posts.

349

13/03/20

15:10

Post #: 43477771
Share

Originally posted by stardestr0yer: ↑

You obvioulsy do not understand the business or play they are trying to make here. While in general I would agree with that comment in a situation like this if I was in your shoes looking from the outside, if you met with management and have followed the story you would know a few things:
1. That gross margin was based on the financial year which ended Dec 2019 and automation machinery was only implemented in like October last year. So you will have like 10 months of poor margins. This comment was made like 2 paragraphs below "The Company has also experienced a considerable improvement in operating margins on the back of the automation of the assembly process."
2. This is a pure revenue play

You may say that many businesses always say that they are a revenue play (especially SaaS platforms). The difference is here there is a clear benefit to a much larger player taking them out. Lets say Candy Club gets to 25,000 doors by the end of the year, how good would it be for another massive manufacturer of sweets to buy out Candy Club, put their candy in there at a much cheaper cost and remove corporate cost could you imagine ho wmuch money they would make?

Expand

How "sweet" it is to be up on such a crappy day!!

CLB Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

What's causing the cost-of-living crisis, and how to navigate it

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

There are more pages in this discussion • 2 more messages in this thread...

First 6 Last

Add CLB (ASX) to my watchlist