sorry to disappoint , this stock is heading back to 10c.
Why?
Well apart from the lousy margins Style works on, which are apparent from their announcements, I am in the bamboo flooring business and can tell you these guys don't have a monopoly on the stuff. In fact others produce better products.
A guy turned up at my business a month ago and said he could sell me the same stuff Style sells from the same factory!( compressed direct stick boards). The Chinese partner in the factory is selling the same stuff to the competition?! Hello! . What sort of deal is that with your Chinese partner?
Ask yourself what the Chinese plan to do with the Aussie partners long term . If history is a guide it won't be pleasant. You going to take a chance that the Chinese are really the good guys and will look after you? Good luck!
Style can barely make a buck a sqm based on the quarterly, so even if they sell 1million sqm a year it just pays the overheads. $2000 cash flow for the quarter. The local leaflet deliverer does better.
This is one pumped up stock . If you're ahead, get out now!. If you're not get out anyway
MTM Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
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