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92.5¢ youfoodz holdings limited

1. Make the food in the cost effective region and transport it....

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donteatme

9,448 Posts.

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09/12/20

15:45

Post #: 49458416
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Originally posted by johnmeranaam ↑

I asked around about this one because I don't know the food space *that* well. Few reasons I heard to be wary.

Might be helpful for other people also on the fence about this ticker:

#1 - food is riskier than other thematics. Exporters have blue ocean potential. Domestic traders not so much. OK for Brisbane where food scene is simple with low cost base. Not so easy in Syd/Melb. Also... high CAC. My fave quote: "They love billboards. That ain't cheap!"

#2 - heavy-ish debt. Using the capital for building factories in so-so industrial areas (resale value??) and paying off current loans

#3 - extreme COGS. Should be making at least some money in this space. COGS should be more like 30-40%, max 50% rather than 70%

#4 - mgmt doesn't have a good rep. I mean, I don't care but the big boys ($100k parcels+) didn't like the bad PR e.g. super not paid

Not trolling. Simply don't want to let all the wisdom shared by people way smarter than me go to waste.

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1. Make the food in the cost effective region and transport it.
2. Debt paid off and new purpose built factory being built from a portion of the $70M IPO
3. Ok
4. The articles were old and the business is still thriving.

Cheers
YFZ Price at posting: $1.18 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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