Rank: Elder Joined: 12/7/2012 Posts: 11,935
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sparkly wrote:MugundaMan wrote:sparkly wrote:
Eveready has no business to speak of. Their dry cell manufacturing business is now obsolete.
For now they are just a general distributorship company and doing very badly at it;
1. Paltry sales of 300m per annum. There are hundreds if not thousands of private businesses doing turnover of 300m and above.
2. Razor thin gross margins of 25% far cry from the 40%-70% gross margins enjoyed by manufacturers.
3. Huge overheads in the region of 300m per annum. Seriously who incurs overhead costs as much as the annual sales?
If I was management, I would delist the company immediately to save on the compliance costs related to listing at nse; Sell all non-core assets; declare all staff redundant then invest in a new line of business like logistics.
 Sparkly, Of course I do not expect you to say anything positive about a stock that munched much of your bank account in the past. Be patient. Besides the glaring contradiction above, let's remember a few things; 1. Remember this was the first year post the suicide deal, and with brand new products. 300m is not child's beans my fren. Try launching your new product and making the same. 2. Remember that year was in an election year when most businesses except price inelastic ones like Safcom did really bad. 3. Remember gross margins for companies that are distributors and for manufacturers are two totally different animals. Regardless, 25% is a pretty penny in any sector. 4. I agree with you on overheads. They need to retrench and retrench fast, and control all their fixed costs. These surely cannot be allowed to be growing when the company isn't making the type of operating profits that it should be making. Once that happens and earnings pop as TURBO entrenches itself in the market, this company is good to go. The stock slumped the day after the profit news came out then soared back with crazy demand the next day with buy orders trumping sell orders by like 3 to 1. Regardless of how this thing moves in the coming months I am in it for the long haul. If you have any shares you are disposing of since you hate this company with a passion please send to me  Now soaring at 0.95 Kumbe it was @MugundaMan that was promoting Neveready  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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