# BWX - BWX Limited



## System (26 October 2015)

BWX is an Australian unlisted public company which manufactures and distributes beauty and personal care products in Australia and internationally.

It is anticipated that BWX will list on the ASX during November 2015.

http://www.bwxltd.com


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## Muschu (12 February 2016)

System said:


> BWX is an Australian unlisted public company which manufactures and distributes beauty and personal care products in Australia and internationally.
> 
> It is anticipated that BWX will list on the ASX during November 2015.
> 
> http://www.bwxltd.com




And it's done well... Watching not holding.


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## Gringotts Bank (22 February 2016)

The trend lately has been for stocks with this sort of pattern* to get thrashed over a few weeks, with 30-40-60% losses.  

Let's see.

* trendline break after long and reasonably strong uptrend.  Disclosure: no position held.


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## citac (2 November 2016)

International sales will need really push hard for BWX in the coming year.
Been a good stock to me so far, just hit the 12 month CGT break. 
Chinese sales figures and the exposer into the UK will have to be the main driver if BWX is to hit the FY17 guidance of 30%. 


Anyone else on board this stock?


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## Anglers Rest (3 November 2017)

It's my biggest holding though to be fair it's a small portfolio!


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## qldfrog (3 November 2017)

citac said:


> Anyone else on board this stock?



small tactical interest.very small parcel


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## greggles (22 May 2018)

BWX Limited announced yesterday after the market had closed that it has received an unsolicited preliminary, non-binding, indicative and conditional proposal from John Humble (CEO and Managing Director) and Aaron Finlay (Finance Director) in partnership with Bain Capital Private Equity, L.P. and its affiliates, to acquire 100% of the shares in BWX for $6.60 cash per share or a scrip alternative in a newly incorporated acquisition entity of 75% shares and 25% cash.

BWX closed yesterday at $4.41 and has spiked $1.62 this morning to be currently trading at $6.03.

The company peaked at around $8.25 in January this year but fell to around $5 following the release of its 1HFY18 financial results on 21 February.

An Independent Board Committee established by the Board of BWX has recommended that shareholders take no action in respect of their shareholdings in BWX until the IBC have evaluated the proposal.


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## Miner (29 September 2018)

greggles said:


> BWX Limited announced yesterday after the market had closed that it has received an unsolicited preliminary, non-binding, indicative and conditional proposal from John Humble (CEO and Managing Director) and Aaron Finlay (Finance Director) in partnership with Bain Capital Private Equity, L.P. and its affiliates, to acquire 100% of the shares in BWX for $6.60 cash per share or a scrip alternative in a newly incorporated acquisition entity of 75% shares and 25% cash.
> 
> BWX closed yesterday at $4.41 and has spiked $1.62 this morning to be currently trading at $6.03.
> 
> ...



Hello Gregg et.al
Could you or any one keeping interest on bwx and chart specialist please advise of there is any break signs for the fathomless southern drop of this stock?
Looks like the $6 stock price takeover offer was a calculated move to manipulate market. More frustrating because all those newsletters and brokers kept on evaluated bwx at a high rate now say nothing. Concerted ramping ?
Thks
DNH.


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## bigdog (20 December 2018)

*Why the BWX share price is cratering today*





Motley Fool reported today
https://www.fool.com.au/2018/12/20/why-the-bwx-share-price-is-cratering-today/

The *BWX Limited* (ASX: BWX) share price has dived 38% today after the group behind the *Sukin* natural beauty products brand issued another big profit downgrade today. For the six-month period ending December 31 2018 BWX now expects to make just $7 million in EBITDA (operating income).

It also claimed today it can post full year EBITDA between $27 million to $32 millions, which compares to prior guidance for full year EBITDA of $40 million.

However, investors should note that to achieve the bottom end of its new EBITDA forecast it will have to deliver at least $20 million EBITDA in the half year ending June 30, 2019.

In other words it will have to pretty much triple first half EBITDA which seems a long shot given this is essentially a fast-moving consumer goods business.

BWX’s new CEO blamed the downgrade on softer-than-expected sales in China, poor performance at its recent US acquisitions *Andalou Naturals* and *Mineral Fusion*, alongside some issues around *Sukin* sales.

Given the steep share price falls it seems these excuses and updated forecasts are not washing with investors in a company that only listed back in November 2015.

In the interests of disclosure I should note I sold all of my BWX shares between March and September 2018 concerned about multiple issues around the business.

What really set alarm bells ringing though was an excellent July 10 _Australian Financial Review_ article reporting that BWX was being sued in the US by a former capital markets advisor (Waterloo) amid some surprising allegations.

The allegations made by Waterloo Capital Partners were essentially that BWX’s former management team was deliberately chasing acquisitions (such as Andalou Naturals and Mineral Fusion) as it believed it could raise capital from public investors at inflated prices to fund them.

The kicker is that according to the allegations in the AFR article BWX’s then management team (CEO and CFO) schemed to cash out their stakes in the business by selling them off at a valuation inflated by the acquisitions that were actually partly paid for with debt.

Reading between the lines this suggests that the acquisitions were not about the synergies and distribution networks as claimed, but rather part of a concocted management debt-to-equity arbitrage strategy to take advantage of the largesse of public investors and enrich its former management.

Subsequent to the acquisitions we’ve been informed they’re not performing to expectations, while their architect in its former CEO John Humble sold the majority of his shares at $3.70 for $25.1 million in October 2018 according to the AFR.

Moreover, the CFO and private equity operator (and sometime advisor to the ex-maangement team) Bain capital have also since departed the business and issued notices to that effect in September 2018.

The June 30 2018 BWX balance sheet shows around $72.8 million in total financial liabilities (debt), which consists of bank debt (around $44.5 million in total) and payments still due for the Andalou and Natural Fusion acquisitions (around $21.8 million in total).

In total $18.24 million of the bank and acquisitions debt is listed as a current liability due to be paid within one year in effect, with the remainder of $54.5 million due later on.

In effect then debt now stands at around 3.5x ambitious forecasts for FY 2019’s EBITDA. The reported bank debt is around 1.6x forecast EBITDA, with BWX’s lenders likely to be getting nervous given this is based on forecasts for a huge second half. Typically once net debt to long term EBITDA gets to around 3.5x or more companies can expect regular meetings and communications from their bankers.

According to Commsec BWX has a $357 million valuation, which places it on 13.2x the bottom end of its new EBITDA forecast.

The question for investors then is whether BWX can turn itself around based on the strength of consumer demand for its products….


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## greggles (20 December 2018)

The performance of BWX in the last six months has been nothing short of catastrophic. That $6.60 take over offer in May must look pretty good in hindsight, now that the share price is currently trading at $1.64.


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## citac (29 January 2019)

Hi everyone, 

Big dog, thanks for your run down, it was like watching a train wreck about to happen and no one could stop it. 

it's a wait and see option for me until the end of Feb when the Half yearly's come out. 

Consumer spending is heading south so unless they have retained customers based on name awareness and brand loyalty, and the online portals somehow turning a profit, and if synergy costs have been made I don't see how they will meet targets. 

How close is the company to its loan covenants? is another thought.


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## citac (7 February 2019)

BWX up 7.69% today, volume of sales has doubled 2 days in a row. 
Report due 22.02 

Lets see how they went


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## citac (28 February 2019)

I sold out prior to announcement, unlucky for me. 
Good luck to all holders, new management seems to be doing well. 

Online portals look like they have a chance at succeeding, court case still going on in the states, something to keep an eye out.


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## Gringotts Bank (1 April 2019)

V bullish flag ready to move up.


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## RobL (2 October 2019)

The stock chart is showing some positive movement to the long side having broken through a key resistance level at AUD 3.906 closing at AUD 4.090 today Wednesday, 02 October 2019. The next resistance level is AUD 4.533. The stock reached a high of AUD 8.190 in January 2018.

Disclaimer:
This information is for general information only and should not be used solely to base trading or investment decisions. Please do your own research. The companies website is here https://bwxltd.com/ .

Here https://decentralisedwealth.com/TopTens.html you can find some other interesting US stock’s to look at. Australian stocks will be added in the next week or so.


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## Dona Ferentes (17 July 2020)

BWX has successfully completed its $40 million underwritten institutional placement, issuing 11.8 million new shares at a price of $3.40 a share. The company will now conduct a share purchase plan at $3.40 a share to raise an additional $10 million.

The company said it received strong interest from existing shareholders and other institutional investors, with demands significantly exceeding the funds BWX was seeking to raise.



> “We are very pleased with the strong support from our institutional shareholders who are right behind our plans to transform BWX’s operating model with the development of a new world-class manufacturing facility," said chief executive and managing director Dave Fenlon. "Following a strong FY20 trading performance, we are committed to using the placement proceeds to invest in the new facility which we expect can solve capacity constraints, unlock significant efficiency gains, and deliver growth over and above our three year strategic plan."


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## Dona Ferentes (18 July 2020)

The expansion of BWX's business includes the reshoring of key manufacturing processes previously done by a third party in the United States.

BWX will build a new manufacturing facility in Australia with four automated, high-speed production lines in a bid to triple the throughput compared with its existing manufacturing site.

Chief executive Dave Fenlon said the project would involve _greater automation, redeployment and upskilling to enhance efficiencies across staff and production and reduce costs on a per unit basis._

Fenlon says the reshoring of BWX production of cosmetics will enhance company control over the _end to end_ supply chain and assist with guaranteeing the continuity of supply.

BWX is an example of a company with manufacturing capability being able to pivot quickly because of COVID19. It was able to switch to the production of hand sanitiser within 21 days. It quadrupled its output of hand wash.


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## Miner (13 January 2022)

BWX (ASX:BWX) share price sinks 14% on leadership news
					

The BWX (ASX: BWX) share price has plunged 14% today after the beauty company announced a change in its executive leadership.




					www.fool.com.au
				











						Here's why the BWX (ASX:BWX) share price is sinking
					

The BWX Ltd (ASX:BWX) share price is down around 12% after a surprise leadership change at the top of the natural beauty business.




					www.raskmedia.com.au
				



CEO gives stability but if he or she is on a rocking chair what happens to the company.
Could the real problem with BWX is the board and chairman and not the CEO ??
The revenue reportedly was good.
CEO depends on Chief Operating Officer's success so why market did not see it ?
But I am more wrong on analysis than correct.
Just gambled to buy at 3.69 and found the price was already lower than that .
May be $3 by the end of the day ?
Who knows


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## Miner (14 January 2022)

Miner said:


> BWX (ASX:BWX) share price sinks 14% on leadership news
> 
> 
> The BWX (ASX: BWX) share price has plunged 14% today after the beauty company announced a change in its executive leadership.
> ...



My expectation on yesterday's BWX execution was incorrect or untimed more correctly. Who knows. Probably it will give an opportunity at $3 to average the buy price.


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## Miner (11 March 2022)

Shares dived down to almost $2 and still recommended as a buy. Statistics does lie ?
May be the directors, Regal Fund Management  and I , are aiming to get milk from a bull   


			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02497377-1DHLFTOMRK1UDQ783Q9I4G3FEI/pdf?access_token=0007a9uHydWiFWG9C3EgoVJXqRcC
		



			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02495672-49BHUSPS3IFSV1NF2A218N3SQE/pdf?access_token=0007a9uHydWiFWG9C3EgoVJXqRcC


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## Miner (5 May 2022)

Miner said:


> Shares dived down to almost $2 and still recommended as a buy. Statistics does lie ?
> May be the directors, Regal Fund Management  and I , are aiming to get milk from a bull
> 
> 
> ...



BWX is appeared to be having no luck - with increased revenue but lower profit. It will be when Chemist warehouse provides another piece after 50% discount.
The CEO gone.
Volume does not bring the profit when goods sold at 33% of normal retail price for a real good product.
I do not think Blackmore BKL or alike would take this as an opportunity to acquire and expand their struggling business in a very high competitive market. It is reminding me of Kodak demise.
Poor investors who bought the rights at $3 plus not long ago against rhetoric
For the BWX followers / holders - If you are offered the CEO chair, what are the three things you would like to do?
Only two months back few directors invested their money on buying from market - obviously they thought too much of their ability

https://cdn-api.markitdigital.com/a...pdf?access_token=00072y6JxwSRNqUgDYlXh323ILxq - Directors buy

https://cdn-api.markitdigital.com/a...pdf?access_token=00072y6JxwSRNqUgDYlXh323ILxq - UBS reduced holding


			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02518508-0BM969FJ3C4UKEQFB2TR254QJ3/pdf?access_token=00072y6JxwSRNqUgDYlXh323ILxq
		

https://cdn-api.markitdigital.com/a...pdf?access_token=00072y6JxwSRNqUgDYlXh323ILxq UBS increased holding


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## Miner (28 June 2022)

last nail on the coffin - shares offered at 0.6. Price dropped by 38 percent.


			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02535782-4M7L3F3EG3BMG3L5EU0N37HUJU/pdf?access_token=0007xWBHyiAyBmq6H1zELUaU6QVQ
		

insult to injury.
@Joe Blow - my tip for July . May be some rise will happen to handover my wooden spoon to another member in July.


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## Dona Ferentes (28 June 2022)

_Wow, deep discount. Exploring new lows. reopened at 70c_


BWX has announced a fully underwritten $23.2 million capital raise, comprising a $13.5 million placement to sophisticated and professional investors and a $9.7 million _*1 for 10  *_non-renounceable entitlement offer,  with the new fully paid ordinary shares fully underwritten at *60¢ per* share, representing a 48.7 per cent discount to last closing price of $1.17 per BWX share on 23 June



> _   Funds raised would be used to accelerate debt reduction and for working capital_, the company said



BWX now expects 

a net loss between $10 million and $14 million on revenue up 6 per cent to $206 million in financial year 2022.
 EBITDA is set to plunge 76 per cent to between $6 million and $10 million.
The company has issued financial year 2023 guidance for EBITDA between $45 and $49 million on revenue up to $270 million.


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## Miner (30 June 2022)

BWX  is my tip for July.
Probably with a rights price of 0.6, the price of BWX will reach below 50 cents by the end of July 22 making me a consecutive wooden spoon winner.
.  
BWX is debt prone and ready for extinction with a remote chance of acquisition by others like MSB (my wish) to get the price up and up .
Shaw and Partners has reiterated their buy with a price target of $1.



			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02536469-5T8AU27DKOIRA0S8BFV8U6SFSR/pdf?access_token=0007MQI24Nj8Bh21tYVH2hDes0L4
		




			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02535785-6FKE2HPMNO3D1BLI7MJSR8D5CE/pdf?access_token=0007MQI24Nj8Bh21tYVH2hDes0L4
		


Looking for fathomless bottom 






Regal is still hopeful but to be seen how much they have put into the recent CR


			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02529515-2VUU5K13O8O5AT60UUO95NQ0IN/pdf?access_token=0007MQI24Nj8Bh21tYVH2hDes0L4
		




			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02532877-1TOREPIPL5QCAF7RG53J8UV2IE/pdf?access_token=0007MQI24Nj8Bh21tYVH2hDes0L4
		



			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02535782-4M7L3F3EG3BMG3L5EU0N37HUJU/pdf?access_token=0007MQI24Nj8Bh21tYVH2hDes0L4
		



			https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02535782-4M7L3F3EG3BMG3L5EU0N37HUJU/pdf?access_token=0007MQI24Nj8Bh21tYVH2hDes0L4


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## Miner (31 July 2022)

BWX  went further down without the impact of FMG investment.
I am putting it again for August tipping with a closing price of 68 cents.
Normally post CR the price goes down only to be up 
.https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02544414-3A597614?access_token=83ff96335c2d45a094df02a206a39ff4


			https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02544413-3A597613?access_token=83ff96335c2d45a094df02a206a39ff4
		

SPP was only 76 pc success.
Will see what happens by 31 Aug



			https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02543031-3A597377?access_token=83ff96335c2d45a094df02a206a39ff4


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## greggles (20 December 2022)

BWX has cratered today after releasing their FY22 Financial Results and being reinstated to official quotation.

Frankly, their financials are a mess thanks in no small part to their ~$64 million of debt. They are now in a very difficult position and will need to reduce debt and slash operating costs. Not a lot of optimism surrounding BWX at the moment and this will weigh heavily on the share price in the near term.

Today the share price is down a whopping 46.83% to 33.5c but I expect it to fall further in early 2023. It will take a lot of manouvering for management to extricate the company from the mess they are now in and more bad news is likely in the coming months. Turning this company around will be very difficult.


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## Sean K (20 December 2022)

greggles said:


> BWX has cratered today after releasing their FY22 Financial Results and being reinstated to official quotation.
> 
> Frankly, their financials are a mess thanks in no small part to their ~$64 million of debt. They are now in a very difficult position and will need to reduce debt and slash operating costs. Not a lot of optimism surrounding BWX at the moment and this will weigh heavily on the share price in the near term.
> 
> ...




Is this Twiggies Poseidon of the skin game?


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## The Triangle (21 December 2022)

greggles said:


> BWX has cratered today after releasing their FY22 Financial Results and being reinstated to official quotation.
> 
> Frankly, their financials are a mess thanks in no small part to their ~$64 million of debt. They are now in a very difficult position and will need to reduce debt and slash operating costs. Not a lot of optimism surrounding BWX at the moment and this will weigh heavily on the share price in the near term.
> 
> ...



Turning it around will be a breeze.  Just have to bring in the administrators first and wipe out equity holders.... Seems like they only people who will be brave enough to pick the bottom will be those trading on insider knowledge about what the lenders plan for BWX.   Forced asset sales?  Conversion of debt to equity?  What will it be?  Net tangible assets are negative $0.32/share (negative $60 million or so?) - only good thing is the EBITDA they've forecast (if you believe them) is ok.   It's that pesky debt level.

How many times do we see ASX listed mid-caps try and expand into other markets by purchasing random companies only to fail 18-36 months later?   So rarely does it ever work out.  Also, rarely does borrowing $$$ to pay a dividend work out either. 

I was at an IGA today in Perth and noticed a sukin skincare rack off on its own (not in the beauty isle) with heavily discounted things like face wash for $5.99 save $10, and lotion packs for $14.99 save $16.


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