This company did well in March when it started selling hand sanitiser at Chemist Warehouse and other outlets and online. However covid-19 lockdown also killed its beauty salon business, leading to closing the salons, laying off staff and a 0.8c capital raising (shares now 0.6c). Meanwhile in June it announced it would start selling Jennifer Hawkins branded artificial tanning in 800+ Coles supermarkets in August. The June quarter cash flow report shows that it is now cash flow positive on a trimmed down beauty distribution business minus the salons while the Coles sales haven't even started yet. Despite the Coles agreement and positive financials, shares continued to languish at 0.6c lows. By way of comparison, when SES (Secos) announced a deal to sell biodegradable plastic bags at Woolies stores, the share price doubled. It is my belief that a rerate is on the cards here.
