I initiated a small position today, pending further DD. Not a...

I initiated a small position today, pending further DD. Not a dissimilar start to listed life as MMM which IIRC floated at $1.41 back in 2018 and sank like a rock to ~$0.20 but has since come good.

134.4 bits of paper * $1.08 = $145m market cap, with ~$20m net cash taking into account the company’s large net trade payables ($25m vs $6m receivables so I’m taking that off their $40m in pro forma cash on listing) = $125m EV for a business that should do $150m in sales this financial year at a minimum, assuming Bells have done their job = ~ 0.8x FY21 EV/sales. Could still go lower but is relatively undervalued.

Woolies and Coles have both shown an interest in this space with WOW’s investment in MMM and Coles acquisition of Jewel Foods (albeit out of VA). Can see one of them taking an interest here.

I also rate WSP as an investor.

Founders look and sound like knobs and I have NFI who RGT Capital is but risk/return looks alright here.

https://www.foodanddrinkbusiness.com.au/news/sale-of-jewel-fine-foods-to-coles-completed