BWX up 5% early, page-8

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kennytmhk

84 Posts.

29/11/17

10:45

Post #: 29206640
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Originally posted by Cirrusplane ↑

Ooops, that didnt work too well.

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.

Expand

BWX's PE is not 52. The current market cap is $800M (@$6.8). Last year statutory net profit is $13.4M. And it gives you the PE of 57. But this excludes the profit making from three acquisitions.

Last year normalised EBITDA:
BWX $26.4M
MF US$3-4M
AN US$8.5M
NL $4M

BWX Price at posting: $6.78 Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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BWX up 5% early, page-8

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