# MMM - Marley Spoon AG



## System (7 June 2018)

Founded in 2014 in Germany, Marley Spoon is a subscription-based weekly meal kit service that services customers in three primary regions: Australia, United States and Europe (servicing Austria, Belgium, Germany and the Netherlands). Since launch, Marley Spoon has delivered over 14.5 million individual meals and developed more than 9,000 recipes. As at 1 March 2018, Marley Spoon had over 111,000 Active Customers across both the Marley Spoon and Dinnerly brands. 

It is anticipated that MMM will list on the ASX during July 2018.

https://marleyspoon.com


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## So_Cynical (8 June 2018)

Martha & Marley Spoon sends the recipes of your choice and the fresh, pre-portioned ingredients you need to cook them directly to your door, so you can enjoy something new and delicious any night of the week.

Why???


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## greggles (8 June 2018)

So_Cynical said:


> Why???



Because we now live in a world of convenience where cooking from scratch is too hard. It takes time, thought and visits to places like supermarkets.

Marley Spoon appear to be tapping into the high disposable income but time poor market consisting of people who don't want to think about dinner but want something more interesting than a BBQ chook and a plastic container of coleslaw.


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## McLovin (8 June 2018)

greggles said:


> Because we now live in a world of convenience where cooking from scratch is too hard. It takes time, thought and visits to places like supermarkets.
> 
> Marley Spoon appear to be tapping into the high disposable income but time poor market consisting of people who don't want to think about dinner but want something more interesting than a BBQ chook and a plastic container of coleslaw.




But you still have to cook whatever they drop at your door. I don't get the attraction of Marley Spoon. I live in inner-Sydney, the supermarket up the road from me has everything I need to make a meal and it takes about 10 minutes to go there buy what I want and come home and cook it. They also have a plethora of pre-cooked (not frozen) meals that range from lasagne through to soups and salads. There's an abundance of food recipes on the internet, it's not as though I need Marley's recipes. To me it just looks like a service providing very expensive groceries. The other drawback for the time poor is the use it or lose it nature of having fresh food delivered. If you get home from work at 8pm or later can you really be f**ked cooking a meal from scratch?


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## greggles (8 June 2018)

McLovin said:


> But you still have to cook whatever they drop at your door. I don't get the attraction of Marley Spoon. I live in inner-Sydney, the supermarket up the road from me has everything I need to make a meal and it takes about 10 minutes to go there buy what I want and come home and cook it. They also have a plethora of pre-cooked (not frozen) meals that range from lasagne through to soups and salads. There's an abundance of food recipes on the internet, it's not as though I need Marley's recipes. To me it just looks like a service providing very expensive groceries.



I don't understand it either. But I've never understood the Weight Watchers meals that they deliver to your door either. I don't get home delivered food that isn't a pizza or something that shows up hot and ready to eat and is usually ordered after a sixpack has been consumed.

It's winter so my practice this time of year is to make a hearty slow cooker meal on Sunday afternoon to eat that night but with enough leftovers for three dinners that week. Freeze in separate containers and microwave when you want a quick dinner. Cheap and quick meals.

Still, they have 111,000 customers according to their prospectus, so somebody is buying it and they are raising $70 million in the IPO. I wouldn't go near it but I will be watching with curiosity when it lists.


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## McLovin (8 June 2018)

greggles said:


> I don't understand it either. But I've never understood the Weight Watchers meals that they deliver to your door either. I don't get home delivered food that isn't a pizza or something that shows up hot and ready to eat and is usually ordered after a sixpack has been consumed.




I understand the convenience of a microwavable meal, or what M&S in the UK do which are high quality oven re-heatable meals for home. I don't see the point of delivering someone a bunch of ingredients and a recipe card and saying now go cook. How far can you get with a product that has to run a very fine line between having recipes that are simple enough for lazy, amateur home cooks to attempt but complex enough to justify the price? Their natural competitors are supermarkets, Ubereats etc not pre-cooked meal delivery services imo. Portion sizes would be interesting to understand to. Do they load their meal kits up with cheap carbs and/or vegetables to offset the costs of delivery? If they do then my $15 steak at any of the ten pubs within spitting distance of my house start to look much more appealing.





greggles said:


> Still, they have 111,000 customers according to their prospectus, so somebody is buying it and they are raising $70 million in the IPO. I wouldn't go near it but I will be watching with curiosity when it lists.




They spend millions on advertising so not surprising the customer count is relatively high. What would be interesting to know is customer churn. That'll give you a much better insight in to whether customers perceive value.


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## PZ99 (8 June 2018)

To me it sounds like a wheel and deal meal for people working from home and not away.

The basic idea works for me - I live in a tower block, I can order only what I want, cook, eat, dispose little and keep my days off (if any) for quality of life rather than shopping.


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## greggles (8 June 2018)

McLovin said:


> They spend millions on advertising so not surprising the customer count is relatively high. What would be interesting to know is customer churn. That'll give you a much better insight in to whether customers perceive value.



Yes, I'd like to know this too. I suspect that it is probably quite high. I also noted this on their website concerning the use of funds raised in the IPO:


> The Offer is being conducted to provide:
> 
> additional cash on Marley Spoon’s balance sheet, in particular to assist funding its growth strategy, fund expected losses and its strategy, and an increase in working capital;
> for the repayment of certain of its existing debts;
> ...



So, apart from funding its growth strategy, the money will be used to fund expected losses, pay off debts and to gain an enhanced profile from being a listed entity so that they can attract and retain quality employees. Doesn't sound very innovative.







Their net losses are increasing and an IPO is the best way to fund future losses without having to go around shaking a cup at venture capitalists. I also think that the IPO is probably designed to allow early investors in the company an easy way to exit their investment quietly.


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## So_Cynical (8 June 2018)

McLovin said:


> But you still have to cook whatever they drop at your door. I don't get the attraction of Marley Spoon.




This was the point of my why - its an uncooked meal and as such would have very limited market appeal.

Marley Spoon is really just a grocery retailer of sorts...ill pass.


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## greggles (3 July 2018)

Offer price = $1.42
Current price on Day #2 of trading = $1.097

Not a good start for Marley Spoon.


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## tech/a (3 July 2018)

Many years ago when AMP floated My Old man had 4000 issued to him as a long term client.
He asked me what to do with them. I told him to sell on open.
He did! $24.12 a share----the rest is history!


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## greggles (3 July 2018)

I like it tech. Sounds like a t-shirt to me.


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## john5 (3 July 2018)

ubereats and menulog are examples of ready to eat deliveries, but they are limited in terms of which businesses work with them, in my area, for example, the choices atm are mainly fast-food style, if i want something "healthier" i either have to cook it myself or go out to eat it, or get it, meal kit models are going to appeal to time poor families who want to watch their nutrition, cooking takes time, sure, but it cuts out the time GETTING the ingredients together (recipes, shopping lists, etc) and that is a bonus, food is a pretty safe moat


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## greggles (10 December 2018)

Well, as predicted MMM has had a very rough time since listing in early July. It peaked at $1.36 in late July but has faltered since then. The share price started to collapse in late October following the release of its 3Q 2018 financial results which detailed an 11.186 million Euro loss in the quarter in spite of an increased marketing and advertising spend.

With only 17.613 million Euro in the bank at the end of September and an estimated cash outflow of 36 million Euro in the current quarter, Marley Spoon is facing an uphill battle to reach profitability as well as the prospect of another capital raising in the near future.


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## greggles (7 June 2019)

Marley Spoon has announced today that it has entered into a strategic partnership with Woolworths Group Limited.

From the announcement:


> The agreement includes an investment by Woolworths that will provide A$30.05 million in funding to Marley Spoon. The investment comprises debt and equity, as outlined in further detail below.
> 
> The partnership will see both companies work collaboratively to grow the Marley Spoon brand and Dinnerly, Marley’s Spoon’s budget offering, in Australia, and to identify and implement operational synergies, with an initial exclusive term of five years.
> 
> ...




Sounds like Woolworths will be flogging Marley Spoon products in-store. Well, it's the first good news MMM has had in a while so I'm sure the shareholders are a little happier today.

Marley Spoon is up 70.45% to 75c today.


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## Dona Ferentes (30 January 2020)

> _greggles said" _Sounds like Woolworths will be flogging Marley Spoon products in-store soon...



- doesn't seem to be the case (six months later). MMM is down to 30c a share, so the WOW infusion isn't working any magic. Also (_drum roll_), WOW lent a further $4 million by way of Convertible Note in Sept 2019.

CEO founder and CEO Fabian Siegel said MMM would start sourcing products from WOW suppliers and distributors, use WOW Connect logistics to distribute meal kits interstate, advertise on WOW store digital screens, online and in their magazine and market to Woolworths Reward loyalty card members. Siegel sees these benefits flowing through in 2020.

Marley's Australian sales rose 50% in Dec quarter, customer numbers rose 56% to 68,000 and number of orders rose 54%. 


> The strong performance from Australia helped Marley Spoon lift total revenues by 23 per cent in the December quarter and by 41 per cent to €129.6 million ($A212 million) over the year, exceeding the company's 35 to 40 per cent guidance. Lower marketing and customer acquisition costs boosted contribution margins, enabling Marley Spoon to reduce December quarter losses to €2.4 million ($A3.9 million) compared with a loss of €8.6 million ($14.03 million) in the previous fourth quarter.
> 
> Mr Siegel reaffirmed the company's guidance to be EBITDA positive by the end of 2020. "We believe that 2019 was an important year as the Australian business showed us what this business should look like," Mr Siegel said



_So, We're the guinea pigs for some European dream?_


> "We are in the early stages of a five-year strategic partnership with Woolworths and the growth opportunities and operational synergies from this collaboration have only just begun," he said. Marley Spoon expected to see similar improvements in the US and Europe after investing in infrastructure including manufacturing facilities



The meal kit market is worth more than $300 million in Australia and grew about 40 per cent last year, according to Nielsen. Meal kits currently account for *less than 1 per cent* of the food and grocery market but the sector is expected to continue to grow, according to a recent UBS report, taking fresh food sales and foot traffic away from supermarkets. "Meal kits challenge the traditional supermarket model, with fresh ingredients for each night's meal delivered weekly," UBS said.

As a result, most major grocery retailers in Australia and overseas have announced partnerships with or have acquired meal kit businesses, or have increased their range of meal kits in-store.
https://www.afr.com/companies/retai...rs-soar-after-woolworths-deal-20200129-p53vxd

- _having now been exposed to Marley Spoon, I think it's fair to say it suits some people (1 percent, perhaps?). The model is 30 minute prep, no waste, easy to follow but freshly prepared meals. It is not a microwave alternative, that's "Light n Easy" or WeightWatchers, or the supermarket chilled offerings.

 The usual demographic is; time poor, inner city professionals. I would add another, and that is, two-person households not into food waste, but want to cook interesting and varied wholesome (fresh) food. The meal offerings are complete and there's no cling-wrapped back of the fridge stuff to forget and, later on, throw out. Each offering is well proportioned. The issue is packaging; SUP. Everything is wrapped and sealed and this is wasteful. And another: Supermarket carparks are not necessarily the easiest or friendliest places; home delivery after selecting the meals allows for less decision making.
_
End result. It's another service offering that is semi-efficient (weekly ordering in advance allows M/S to manage supply issues) but involves freeze or chill packs in cardboard boxes and delivery to the door. Woolworths see it as a threat enough to take a stake, get involved in supply and sourcing logistics, with obvious benefits for WOW (with their economies of scale) and also have a 'peek under the bonnet'. Take out later or see it out or learn something from web-based, data rich KYC Meals-as-a-Service. 

Ah, creative destruction.


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## MovingAverage (1 February 2020)

I'm pretty bullish on MMM for the Feb stock tipping comp. Recently released what seems to be a good quarterly activity report that was well received my the market. Interim results out late Feb so hoping their recent activity translates into a solid Feb of gain.


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## peter2 (22 March 2020)

@MovingAverage  One month too early and you didn't enter MMM again in the March comp. 

Packaged meal companies have been in recent demand both here and in the US as more people are quarantined.


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## MovingAverage (22 March 2020)

peter2 said:


> @MovingAverage  One month too early and you didn't enter MMM again in the March comp.
> 
> Packaged meal companies have been in recent demand both here and in the US as more people are quarantined.
> 
> View attachment 101613



Bahahaha...reason I picked it when I did is I thought we would have been lockdown months ago


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## So_Cynical (23 March 2020)

Ha saved by a Virus...


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## Dona Ferentes (29 March 2020)

... even as coronavirus ravages the global economy ....[and] amid widespread job losses and tanking share prices, some businesses have found opportunity amid the outbreak.

For some — the supermarkets that were on the receiving end of the panic buying frenzy, the retailers selling home office equipment and chest freezers — the events of the past few weeks have given them a sugar-hit they will help them navigate through the recession ahead.

And for a select few, the events could be the catalyst for a permanent change in the way they interact for their customers.

Among the latter is *Marley Spoon, *a meal kit delivery service that, amid one of the deepest share market sell-downs in memory, has seen its shares more than double in the past month and has taken on hundreds of extra workers around the world as it tries to keep up with an enormous leap in demand.

Marley Spoon chief executive Fabian Siegel told _The Australian_ that the surge for meal kit deliveries meant the company was now expected to become profitable faster than previously expected.


> “Suddenly demand has been surging; there’s unprecedented demand for our product,” he said. He also hopes the experience of customers over the crisis will “catapult” the business as they make a permanent switch to online food shopping even after the coronavirus crisis subsides.





> Before the outbreak, he said, online shopping represented just 2-3 per cent of the total grocery market. That is well below the 20-40 per cent online penetration in other consumer sectors, and closing that gap even partially would be a huge boost for Marley Spoon’s prospects. “I do believe there’s a high chance this behaviour will not go back,” he said.




(- we receive it, A box; three x2 meals a week. No waste. Company offering a free box to 10 'friends'  right now. Data capture of course, but worth a few $$)(IM me  if interested!?)


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## Dona Ferentes (29 April 2020)

Marley Spoon says it is benefiting from coronavirus-induced lockdowns, with demand for its delivery meal kits almost doubling globally.


> The ASX-listed German company booked 2020 first quarter revenue of €42.8m ($71.4m), a 46 per cent increase on the previous corresponding quarter, with demand starting to surge as COVID-19 restrictions were implemented in March. Marley Spoon said €22m ($36.6m) of the quarterly revenue had been accrued within a four-week period beginning in the middle of March.





> Chief executive Fabian Siegel believes the current conditions are well suited to its at-home cooking subscription service. “First quarter 2020 saw strong performance for both growth as well as operational efficiency even before the sharp uplift due to the COVID-19 crisis,” Mr Siegel said. “This new environment is a strong tailwind for our business, and as a result, our path to profitability is being accelerated"


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## Dona Ferentes (10 July 2020)

MMM pushed through $2.00 this morning.  Up x5 compared to March.


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## Dona Ferentes (15 July 2020)

MarleySpoon sells for around 1.5 times forecast sales, despite hitting a record high of $2.25 a share on Tuesday.

One analyst said:


> "_They position themselves as complementary to Coles and Woolworths because you do not necessarily order your full seven days from Marley Spoon, you order two to four nights of cooking, but during COVID the basket size is increasing. Groceries is an enormous market worldwide and the online penetration of grocery retailers is one of the last frontiers of digital innovation. So they have got this strong position to grow with the market for online penetration."_


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## Dona Ferentes (29 July 2020)

Marley Spoon has upgraded its full year guidance, saying a shift to online grocery shopping was driving growth in its customer base. The group said existing customers had increased their order frequency and average size at the onset of the pandemic at the end of the March quarter and into the June quarter, with orders normalising by the end of June. As such, it said it expected 70pc year-on-year revenue growth, up from previous guidance of a 30pc lift.


> _The new customers acquired during Q2 show equally strong or better retetnion as the company normally experiences for new customer additions. This has allowed the company to continue to build up its back book of recurring revenue bsuiness in Q2, which accounts for the vast majority of Marley Spoon’s revenue_.



Revenue for the quarter was up 129pc versus the previous corresponding period to 73.3 million euros ($120m), while marketing expenses declined, now 13pc of revenue versus 19pc in the pcp


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## frugal.rock (30 July 2020)

Nice one @Dona Ferentes 
Has hit $3.415 today and currently $3.40, a rise of ~41.7%


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## frugal.rock (6 September 2020)

Mmm looking to fill the gap perhaps.
Note that they are now advertising on TV (free to air).


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## Dona Ferentes (6 September 2020)

_in an interview with CEO (10 minutes) _...

*Marley Spoon It’s Only Just Begun*

Marley Spoon has been operating for 6 years and currently generates half a billion in AUD$ in runway revenue, it achieved positive operating cash flow 1st half 2020 and became profitable in Q2 this year.

*Marley Spoon CEO Fabian Siegel says:*
•_ “We are at the beginning of the journey”_
_• “We leapfrogged our development as a company by 18 months”_
_• “We achieved 2 years planned growth in just 3 months”_
_• “Marley Spoon currently services 180 million households across USA, Europe, and Australia.”_
_• “That said we would be tripling our capacity in Sydney over the next 12 months”_
_• “The largest risk going forward is to continue to manage the surge in growth”_

*Highlights the key drivers to this success:*
• 90% of recurring revenue comes from existing customers.
• COVID stopped a lot of business in their tracks; it had the opposite effect on Marley Spoon.
• Supermarkets restricting the purchase of key staple goods.
• The risk of finding empty shelves at the supermarkets
• MMM outgrew all of its direct competitors during this period YOY Q2 +130%

*How did Marley Spoon weather the perfect storm?*
• Management ensured Marley Spoon was declared an essential service across all our states
• People were forced into lockdown and had to work from home, the desire to cook more frequently went up 10 fold
• MMM target market of busy working professionals were not canceling regular orders due to business travel commitments
• The fear of going to the supermarket and contracting COVID 19
• Throughout this period of extreme disruption Marley Spoon food boxes continued to arrive on doorsteps uninterrupted
• Swiftly integrated stricter health and hygiene standards across all its processing plants
• Empowered its management team to make swift critical decisions and to be entrepreneurial

https://www.sharecafe.com.au/2020/09/04/marley-spoon-its-only-just-begun/


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## peter2 (6 September 2020)

I realised that the COVID lockdowns would be good for a company like MMM but it never occurred to me that the share price could rise 600% in such a short time.

The lock downs will ease eventually and people will eat away from home more often. How will MMM continue to grow? IMO the trend is done for now. Look for the next fad trend.






It's all over red  
	

		
			
		

		
	



	

		
			
		

		
	
.


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## peter2 (6 September 2020)

IMO the quality of pre-cooked packaged meals and their availability has improved significantly this year. Another trend accelerated by the pandemic. Easing of the lock downs will erase the exponential growth rate of this business. Growth will return to normal organic levels provided the quality and availability remain high. Maintaining quality will be key to this sector in the future. This will be a huge challenge when growth returns to normal levels. and the margins collapse.


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## peter2 (26 October 2020)

MMM - Germany completed it's A$56M fully underwritten placement. Local shareholders are left with a bout of indigestion after MMM sold off hard today (1st trading day after placement).


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## hhka (10 November 2020)

What happened today? -23%


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## So_Cynical (11 November 2020)

hhka said:


> What happened today? -23%




Was gona say, Marley spoon would of dropped like a stone, and so it did - risk off.


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## peter2 (8 November 2021)

It's not often I get laugh from reading the AFR (cartoons are dreary) but I did chuckle at this line. 






No doubt there are still plenty of investors who are willing to lose money after the "success" of *MMM*.


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## frugal.rock (14 December 2021)

frugal.rock said:


> I notice MMM Marley Spoon also taking a dive around the same as wow.



Smashed by Woolworths announcement, I guess?
Scary looking chart... I wonder if Covid will breath life into this again?


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## peter2 (21 December 2021)

This "dog" is acquiring Australian "ready to heat" meal company Chefgood.  
I assume it's a good deal for the Chefgood owners. 

Financed by debt and equity placement.


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## frugal.rock (21 December 2021)

Woof.


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## peter2 (24 November 2022)

Woof, woof.  Another capital raise at 0.165 to fund general working operations and pay off some debt.


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## greggles (24 November 2022)

peter2 said:


> Woof, woof.  Another capital raise at 0.165 to fund general working operations and pay off some debt.




MMM was one of those COVID-19 stocks that boomed when the market decided in 2020 that everyone would start ordering their meals to be delivered to their home to avoid catching the virus. But reality had other ideas, and MMM has come down to Earth in a big way.

No matter how hard they try, MMM just cannot seem to turn a profit. Too much competition and too much optimism about the future of the sector has conspired against them. I have never seen an investable business here, just a lifestyle fad that has long since worn out its welcome. It smells a lot like the BNPL industry; massively overhyped but ultimately underwhelming.


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## divs4ever (24 November 2022)

greggles said:


> MMM was one of those COVID-19 stocks that boomed when the market decided in 2020 that everyone would start ordering their meals to be delivered to their home to avoid catching the virus. But reality had other ideas, and MMM has come down to Earth in a big way.
> 
> No matter how hard they try, MMM just cannot seem to turn a profit. Too much competition and too much optimism about the future of the sector has conspired against them. I have never seen an investable business here, just a lifestyle fad that has long since worn out its welcome. It smells a lot like the BNPL industry; massively overhyped but ultimately underwhelming.



 i was buying YFZ in April/May 2021  ( kinda ) sadly it was taken over ( although i did crystallize a profit )

 currently i have a small order in for MFB  which has it's  own warts  ( NZ-based so no franking , and not liquid )

 i saw WOW  taking an interest in MMM  and saw it as a bad thing  

 ( i hold WOW  seriously reduced from the inherited holding )


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