I agree with you that it is sales so the profit could be low....

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kar18na

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18/01/21

20:14

Post #: 50256181
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Originally posted by caketin ↑

That seems a tidy deal.

Most importantly it shows we have a very competent sales team and worthwhile products. Getting brand traction in Woolworths is also significant, "if" people can find it on the shelf. I've often found my favourite brands on the bottom shelf in one row. 6 will take up enough shelf space to be seen.

I doubt we will ever see the details of the deal, but if the product is well placed, that would suggest a good one. We only have two months to find out, which is very quick. I presume the margins are tight, Wooly's and Coles bargain hard, but product recognition is worth a bomb. Is the $2.13m turnover of profit do you think? Retail sales suggests turnover for Woolworths, that could be less than $1m for us.

Another thing I like is this announcement came out well before it was needed. That never happens in my other stocks.

I started off a bit skeptical, but I'm getting confidence in these lads and lasses.

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I agree with you that it is sales so the profit could be low. Our margins may be quite high which I hope is the case with the equipment we bought previously but conversely why then do a raising with this supply agreement? I presume that is to purchase more equipment to supply Woolies for this deal but we will know this very shortly.

As you say brand recognition is good, there are also more deals in the pipeline and it is a forecast so it very well could be higher or also lower. I hope APH are conservative in their estimates haha.

APH Price at posting: 38.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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