HLF 0.00% 0.7¢ halo food co. limited

Depends how you look at it. The capital raising to buy Omniblend...

  1. 268 Posts.
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    Depends how you look at it.
    The capital raising to buy Omniblend was done at .43c, which means if you buy HLF shares on market today at .05c, then you are purchasing Omniblend at 11.6% of it's original value, or $2.5m in total.

    IMO - was Omniblend overvalued at the time of acquisition. Maybe, maybe not. I believe HLF paid a fuller valuation compared to the bargain THM. However, I believe the original KTD was well overvalued having only $2m in revenues at the time, which coupled with the ex founders dumping has led to the demise of the share price.

    Going back to today, would I pay $2.5m for an entity which produced $3.3m EBITDA in contract manufacturing last FY? I definitely would ! Which is why there is so much opportunity in todays share price.
 
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