YOW 0.00% 2.5¢ yowie group ltd

Another strong performance, up 10% over last two days and...

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    Another strong performance, up 10% over last two days and technically shows a clear bounce on high volume from the 50 cent support zone.

    This is the key take out from the cannacord note

    Positive economics for Yowie – distributor takes on product risk

    While the terms of the agreement are not disclosed, we understand the economics for Yowie are positive, meaning it will result in profitable sales of product without major credit risk, nor significant exposure to currency fluctuations. We don’t believe this
    will cause any great distraction to management's time, as the distributors are likely responsible for all sales and marketing activities and expenses once it leaves US shores.

    We basically have no risk in this deal and it's on positive terms. But as someone alluded to earlier, yowie need to put in some work to make this a big hit again. We need to make it clear that this is an Australian company with some of the people involved with the original yowies (Trish Fields). On the price point ideally I would like to see $3.49 but $3.99 is reasonable. I see kinder surprises for $3 at some servos and grocery stores and yowie is a much more premium product to that.

    Interesting times coming up, I think there might be a few more key announcements in the next 8 weeks.
 
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