Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Befriend the trend, coz women will overspend

with 4 comments

I wrote earlier about Trilogy New Zealand on the 7th of November 2015 when it had already tripled in previous 12 months from ~65 Cents in November 2014 to to 1.75$ in November 2015.

https://lifeandequities.wordpress.com/2015/11/07/organic-trend-has-no-end-trilogy-new-zealand/

 

I started buying it in November 2015, have been adding this share every month since then.

 

Since November 2015 this share has doubled, yet again and now trading at 3.5$

 

What a dream run, so far.

 

Still looks cheap, in my opinion.

 

trilogy

50 cents to 3.5$ – Organic Trend growth story

 

The company isn’t tiny anymore approx. 200 Million $ or 1000 Crores INR company now in Market Cap terms. Looks cheap on MCAP / Sales of just 2.5 and PE of ~25 for the growth it is experiencing.

 

I expect an acquisition from L’Oreal, P&G or Biersdorf could happen in the next couple of years.

 

While one could have just as good skin by eating organic food, if women prefer applying certified organic cosmetics with food / plant based ingredients, and I own the shares of the corporation, I will not complain.

 

The three masterminds behind the company are http://www.thebakery.co.nz/about/ , who have bought and sold few companies earlier.

 

Ability to scale

 

I found that companies require a completely different set of make up and skills required to go global. There are over 20 premium / luxury Organic Cosmetic brands in NZ and Australia, just as there are over 50 chains selling burgers in the United States, which have a vintage greater than that of McDonalds and Burger King, yet do not possess the genes to go global, hence stunted to certain parts/states of the US.

Once the companies shows signs of success in two countries, watch out for the global expansion. This applies to only very niche industries not general. An exception has been Apple. But even Apple is going down the hole with some 600 Billion USD of market cap will be wiped out over next few decades, nobody dominates electronics globally. Mark my words.

Trilogy is now becoming profitable in 3rd country. Watch this space.

Disclosure: Invested in companies discussed. Views are personal notions and do not represent any organisation or company. I am not an investment adviser. Investment in stock market can (and many a times do) result in loss of principal capital.

http://www.elevendimension-funds.com

Written by amitdipsite

March 17, 2016 at 4:01 am

Posted in Uncategorized

4 Responses

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  1. Dear Amit,
    Do you still maintain same view on NSE or something changed over a period of time.
    Thanks.

    yogeshbhanushali

    March 21, 2016 at 4:30 am

    • Dear Yogesh,

      Quite bullish on NSE Kenya for long term. First Half in 2016 could be bad as well

      Thanks

      amitdipsite

      April 15, 2016 at 10:52 pm

  2. Dear Amit,
    What’s ur view on Nairobi Stock Exchange.. Is it same or something changed over a period of tym..
    Thanks..

    Yogesh Bhanushali

    March 24, 2016 at 6:54 pm

    • Dear Yogesh,

      Like the company. 40 million USD MCap, can go up 50-100 times.

      Thanks

      amitdipsite

      March 24, 2016 at 7:13 pm


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