Interesting comments - certainly a perspective I hadn't...

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14/03/18

12:01

Post #: 31742749
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Originally posted by Bfitzpatrick ↑

My point is and I turkey believe this is what they are after. Small enough companies would jump at the chance of a partial acquisition by aumake to get exposure.

There are some amazing locally albeit small companies out there that aren’t getting noticed by these daigous. Don’t have the funds to market appropriately or the contacts that AuMake have.

My Guess is they would jump at the opportunity to be present in 20+ Daigou stores (as a start). Fund growth by selling 10-20% of the company to AuMake. It’s basically the same as selling equity for expansion and at the same time you are getting an army of Sales staff in the daigou shoppers streaming and promoting on WeChat.

To me it’s a fantastic idea and a real strategy. House all these Brand’s (plus your big ticket items) under one roof. By sheer reach in AuMake these Brand’s do become known. They provide greater margins to AuMake and the daigous alike. It’s a win for everyone.

Anyway I could be wrong but that’s what I see happening here. And it doesn’t happen overnight but in 12 months if we have 15 stores and 5-10 new Brand’s ( partially or fully owned ) under the AuMake banner. The story is significantly different from today and that’s why I am buying as I don’t think people get that just yet.

BF

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Interesting comments - certainly a perspective I hadn't considered.

I am still really concerned abou the financials though... they seem to be burning cash at an alarming rate and their profit margins are not exactly fantastic...

Will be interesting to watch over the next 12 months thats for sure.

AU8 Price at posting: 30.0¢ Sentiment: Sell Disclosure: Not Held
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