Demand Problem

The reason the share price for YOW is so low and will go lower is the story is a lot different than what was thought.

In the 90's 31m units were sold in the first 20weeks of launch for a total of 65m units in the first year. A lot in this forum will have you believe that this is possible now - but it's not. Yowie has failed to gain this "hype" and penetration has been poor.

Currently Yow has achieved excellent distribution with over 15000 stores selling and more than 50k points of sale for consumers to respond with purchase.

People can say - we are Neilson number 1 - which is true . But even being Neilson number one the company is a long way from breakeven and tearing up cash.Why is that?

Yow have been selling in the US for about 3 years now and last year have only sold 8million. 8 million with a massive distribution footprint and with a massive population of 350m. The US market has been a tough slog and looks set to continue.

The market is waking up to it and with profit looking a distant dream coupled with the big rotation out of high PE stocks YOW could easily go in to 40c range. Even with increase sales - cost base rising faster and consumer demand responding slower.

Look out below