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BWX up 5% early, page-6

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Cirrusplane

93 Posts.

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28/11/17

14:21

Post #: 29181440
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Originally posted by Inbuilt ↑

After watching the video above, what are people's thoughts on us now? Do you still see a good opportunity for us to get to 8+ or is there a consensus that we're at the top and its gonna be hard to move up in the near term?

It is already on a PE of 52 I believe so very high growth is currently factored in. Getting ranged in Coles was responsible for a lot of recent growth, so unless there is another "Coles" type announcement it might get smashed.

The purchases of the fairly dowdy looking makeup brand, and the website that sells different brands of skin care didn't seem to make much sense to an overall strategy. The purchase of Andalou Naturals makes more sense as it opens a door to the US market. The most likely next "ranged in Coles" type announcement would come from this tie up in the USA. However this market is crowded with cheap brands similar to Sukin but its possible. I wonder how the Boots sales are going?

BWX's tagline "Built on Solid Foundations" was created at a time when Sukin was a mainstay of pharmacy and health stores. That has changed and for now its a supermarket brand and that is an unpredictable place to be for a brand to be.I think it really needs a solid pharmacy and health store brand back in its portfolio to shore up its base if it does get dropped but it has no more acquisitions planned. In Australia, it is all hinging on Coles.

The recent General Meeting which was basically about management getting more and diluting the share registry wasn't a good look I dont think.

So looking at the recent chart, it look positive. But thinking about the downside risk at this point if Coles drop them, or sales arent as positive as hoped, or they aren't able to get into the US market, it looks toppy. There just isnt much backup. Just my opinion, its an interesting stock to watch as its so busy but too risky for me at this price.

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BWX Price at posting: $6.81 Sentiment: Hold Disclosure: Not Held
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