YOW 0.00% 2.5¢ yowie group ltd

Looking at the half yearly numbers we had $3.3 million in...

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    Looking at the half yearly numbers we had $3.3 million in inventories under current assets. I believe these are recorded at cost price which is 80 cents. This means we had/have about 4.1 million Yowies in stock. Considering it's been 3 months and we just shipped off 700,000 yowies to Walgreens AND coupled with Easter time, we must be getting very close to having none in stock.

    As the company has mentioned, Angry Birds chocolate surprises will be the priority initially.
    This leads me to beleive we desperately need our wrapper from Hank as well as another wrapper on top of that.

    Looking at the cash position, we have 11.5 million sitting in the bank. We know that the initial advertising cost 500k, we have 900k tied up in the litigation with Hank and lawyers fees on top of this. Considering we havnt had to manafacture any Yowies this year and the inventory had already been paid for l, I think our cash balance is more then sufficient to cover an additional wrapping machine. A higher efficiency one would cost roughly a million dollars I'm guessing.

    Because of the above I can't see the need to raise any capital at these depressed levels.

    Hank is trying to sue the company for 5-6 mill I beleive for the lost business over 10 years. I know that management and their lawyers put in many hours of work BEFORE they made the decision so I'm confident they know what their doing. I think it is very possible that fundies won't fully buy in until this is cleared up.
 
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