I don't disagree... but I'm also conscious that OBJ have limited capital and very limited distribution and marketing capability (the talk of going it alone scares me). With P&G, the reality is any 'major' signing any kind of deal would have had similar terms to P&G so I'm comfortable how this has played out. I'm also conscious that although revenues (to date) are low the margin on those revenues is effectively 100%. At current levels it's not a massive stretch for the company to hit profitability.
P&G are not laughing anywhere at the moment... for any of this to make any sense to them they need theses products to be big winners over multiple years (but it's important to note, if the products fail, for whatever reason.. P&G will be quick to forget, they have many irons in many fires).
However it appears the products have not failed and the roll-out (and substantial P&G investment) is happening across 2 very significant brands and that roll-out has been extended to the US (a very big step)... therefore from where I sit... the coconut is cracked (couldn't help myself) BUT the big questions are:
1. How big is the coconut (it blows my mind that there are no slides on this... )
2. Is this the real coconut or is Tech 2 (DCE mixed with P&Gs skin advisor AI tech) the real coconut and is there a better analogy? Make no mistake, AI will revolutionise skin-care and every other industry for that matter... the big challenge will be making it super easy for consumers.
3. In the last quarter and over the next 12 months what share of OBJs cash spend was (will be) related to the technology generating cash versus other technologies or other applications of that technology etc. (relatively simple question... and again blows my mind an indication of this is not provided).
4. The Director discussion is interesting... I'm interested in the management team (including Executive Directors) and how this is going to be strengthened (although admittedly cash is tight).
5. Forget the past... what's the core strategy of OBJ going forward. This needs to be clarified and clearly articulated... and as we all know management need to lift their skills in communication, reporting clarity and expectation management.
6. Finally, is my skin really looking better. It feels better.
Relax everyone... the ride is only just leaving the R&D station... it's going to be fast and bumpy.
OBJ Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
(20min delay)