Australian (ASX) Stock Market Forum

BWX - BWX Limited

Jump to new
System

System

Joined
27 June 2010
Posts
4,202
Reactions
328
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
 
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.
 
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?
 
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.

big.chart-BWX.gif
 
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.

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.

View attachment 87449
Click to expand...
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.
 
Why the BWX share price is cratering today
upload_2018-12-20_13-24-17.png


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….
 
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. :eek:

big.chart-BWX.gif
 
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.
 
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.
 
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.
BWX.AX_Barchart_Interactive_Chart_10_02_2019.png
 
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."
Click to expand...
 
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.
 
www.fool.com.au

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 www.fool.com.au
www.raskmedia.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 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

1642043640714.png
 
Miner said:
www.fool.com.au

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 www.fool.com.au
www.raskmedia.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 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


Hmm!
Click to expand...
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.

1642126103290.png
 
 

Similar threads

System
CCL - Cuscal Limited
Replies
9
Views
1K
Dona Ferentes
Dona Ferentes
System
BIG - Burrendong Minerals
Replies
1
Views
544
Dona Ferentes
Dona Ferentes
System
RNV - ReNerve Limited
Replies
1
Views
443
Dona Ferentes
Dona Ferentes
System
TME - Tungsten Metals Group
Replies
1
Views
939
Dona Ferentes
Dona Ferentes
System
GHM - Golden Horse Minerals
Replies
3
Views
804
Dona Ferentes
Dona Ferentes
Top