I originally thought the same as you but now believe the Collagen business IS where the real money is .
The low GI food and ingredients space is crowded with many competitors . There is little to stop a big company duplicating what Hollista have done without paying a recurring royalty stream . The patents are not going to help .
The Collagen on the other hand , they are using Australian ovine collagen and have some protection for the extraction process .
This is a high quality product which other companies cannot substitute or easily copy .
It looks very profitable and scaleable . As shareholders we need to be looking to make sure the profits show up in the Hollista bottom line and are not transferred to distributors .
It would be all too easy for directors or related parties to create/take stakes/make arrangements in/with distributor companies so they didn't have to share the profits with Hollista shareholders .
We need to know the plant capacity too .
HCT Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
