EDE - Eden Innovations

[basilio]

Edencrete now approved and used in a shotcrete application in the US.

https://www.asx.com.au/asxpdf/20181115/pdf/4409q6xtbsxvr0.pdf

Seems to excited the market a little. Up 29%.

Yeah another promising story.
I noticed that peak price for Eden was at 10.06am and since then it has been steadily downhill. Now sitting at .085 c just .002c above opening. I think the daytraders are selling out very quickly indeed.

What I would like to see from Eden is an analysis of how much Edencrete they need to sell to
1) Just break even
2) Make a clear profit of $20m a year
3) Make a profit of $50ma year

And with these figures an estimate of how many miles of roads, how may bridges, how many tunnels would be needed to achieve the result.

To my knowledge this type of analysis has never been produced. Wonder why ?

 

[Miner]

Yeah another promising story.
I noticed that peak price for Eden was at 10.06am and since then it has been steadily downhill. Now sitting at .085 c just .002c above opening. I think the daytraders are selling out very quickly indeed.

What I would like to see from Eden is an analysis of how much Edencrete they need to sell to
1) Just break even
2) Make a clear profit of $20m a year
3) Make a profit of $50ma year

And with these figures an estimate of how many miles of roads, how may bridges, how many tunnels would be needed to achieve the result.

To my knowledge this type of analysis has never been produced. Wonder why ?

I am very curious about the medium to long-term usage of the chemical.
As Basilio has asked the right question. With building industry downturn, it is important to learn how much volume of concrete is required to sustain the use of the shotcrete replacement. what is the strength achieved?
Remember shotcrete is only part of the application and not every building uses shotcrete.
Back in 1995 one company provided a product called Caltite. It was used in Singapore to reduce the thickness of brick and places like Singapore it was a great success. Since 1995, I have not heard on the product. Question is what is the sustainability of the product. Need lot of BD activities.
so I will be watching.

 

[jbocker]

I am very curious about the medium to long-term usage of the chemical.
As Basilio has asked the right question. With building industry downturn, it is important to learn how much volume of concrete is required to sustain the use of the shotcrete replacement. what is the strength achieved?
Remember shotcrete is only part of the application and not every building uses shotcrete.
Back in 1995 one company provided a product called Caltite. It was used in Singapore to reduce the thickness of brick and places like Singapore it was a great success. Since 1995, I have not heard on the product. Question is what is the sustainability of the product. Need lot of BD activities.
so I will be watching.

There has been a number of reports of tests carried out, but not for buildings. Most applications have been for highways replacement / resurfacing and hardstands that suffer severe abrasion and traffic. There is a report from MARTA engineers that is worth reading.
There are ongoing tests for prefab concrete structures, and I think this more aligned with bridges. There is also some research in structures reducing steel re enforcement. All this is being done in the US. A large national concrete company in Korea is currently testing, initial results are pending.

How much market is there for the product, is the big question. I am sure that will come if and when the product gets a greater foothold. There are some statement about the kilometres of highways and numbers of bridges in need of repair, but what does that mean for their product would be too much of an extrapolation I would guess. As Basilio might be suggesting that could be convenient.

 

[jbocker]

I picked this for the December tipping competition.
Waiting on some test results for Edencrete out of Korea. If they should also prove positive there will probably be another flurry in the market.

 

[basilio]

In a fit of madness I picked EDE for the Jan stock pick comp.

Why ? Basically I sold out months ago so it's only fitting it should finally get some traction in the marketplace and actually show and hold some gains. We'll see..

 

[basilio]

Eden put out an update on their Edencrete sales in US.

Lot's of promising fluff with maybe 200k sales value. I can't see how these sales are even paying the wages of the new salesmen. They talk of :

The increasing sales in the USA of EdenCrete® for a growing range of applications, many for repeat customers, and the accompanying growth in both the value and geographic distribution of the sales of EdenCrete® over the past year, are very encouraging and strongly support Eden’s objective of significantly accelerating the growth of EdenCrete® sales in the USA over the next two to three years.

Further, Eden believes that this growing success in the USA, supported by the significant market knowledge gained in the U.S. over the past three years, increases the probability of broader geographic success as the marketing footprint of EdenCrete® expands into Australia and other countries in 2019 and beyond.

 

[basilio]

Surrprise. surrprise, surprise.
Eden has just called a Trading Halt ahead of it's umpteenth Capital raising. This is a week after they announced a short term loan from TAS minerals (basically the directors in direct clothes)

I have to give them credit for being able to spin a new, compelling story every time to get more bunnies into the shares and keep up the lifestyle of the Solomon brothers.

I cannot see on the current progress how EDE will ever sell enough Edencrete at a price that will cover the salary costs. No doubt it's a great product and clearly the directors are doing very nicely thank you but for the "owners of the business" the shareholders - another ASX black hole IMO.

 

[jbocker]

Surrprise. surrprise, surprise.
Eden has just called a Trading Halt ahead of it's umpteenth Capital raising. This is a week after they announced a short term loan from TAS minerals (basically the directors in direct clothes)

I have to give them credit for being able to spin a new, compelling story every time to get more bunnies into the shares and keep up the lifestyle of the Solomon brothers.

I cannot see on the current progress how EDE will ever sell enough Edencrete at a price that will cover the salary costs. No doubt it's a great product and clearly the directors are doing very nicely thank you but for the "owners of the business" the shareholders - another ASX black hole IMO.

I think you will be right but maybe it will be good news and your stock tip goes through the roof and you win. Good Luck.
Two day halt suggests that capital raising will be asked. I see that TAS have also asked for a halt.

 

[basilio]

I think you will be right but maybe it will be good news and your stock tip goes through the roof and you win. Good Luck.
Two day halt suggests that capital raising will be asked. I see that TAS have also asked for a halt.

Actually the only way I'm going to win any money in January ...
is betting with you on the outcome of the Trading Halt

I bet $100k to $1k that it will be capital raising...

(Hint. Read the second page of the announcement.)

 

[kahuna1]

These creeps are beyond belief.

TAS and EDE always have been on my avoid list, one read of their accounts is all it tool about 10 years ago.

YUK

 

[jbocker]

(Hint. Read the second page of the announcement.)

How did I miss reading that!

 

[basilio]

Actually there are some surprises in Capital raising Number 263a.

They offer the usual placements. Then they throw in some placement options to give punters/suckers the opportunity to throw a bit more play money to the Solomon fun fund.

Finally there is a rights issue to give all the desperate P/S an opportunity dig deeper into their collective pockets to ensure Christmas 2019 is a very good one for the Solomons. All up they are looking for $9.8m. This is 2 years after they begin production of their unique, you beaut, billion dollar Edencrete project.

They still can't pay the xxxxing wages.

https://www.asx.com.au/asxpdf/20190131/pdf/44275ks7123gzq.pdf

 

[kahuna1]

Oh my ...

I looked at their accounts ... and I am going BLIND again. Nothing new, for over a decade a black hole these guys and associated companies. Raised over 6 mill in 2018 and its GONE .... lets try 9.8 this year ...

Oh please, seriously ? Even if they doubled sales every year and at a margin of 25% how long till they break even at MINUS 6 per year ?

 

[jbocker]

How about throwing in a free pair of Edencrete boots for shareholders. To help with sinking more money.
Where are the exciting little titbits that you get with a capital raising. The one liner they wrote is pathetic and inspires ZERO.
Ble-edencrete might be more appropriate.

 

[basilio]

I think the basic question is whether sales of EdenCrete will ever be more than a useful addition to large suppliers portfolio of building products. I don't doubt it is a good product but trying to make it the mainstay of a a single world wide distributing company and supporting the lifestyle of the Solomons doesn't seem feasible.

What particularly irks me is Eden has never to my knowledge offered a plan that showed how much Edencrete needed to be sold to offer a net return to the company and how much that meant in terms of cement use.

I remember when they first waxed lyrical about the plant they were setting and it's capacity to produce millions of litres of Edencrete which would return Lotto sized funds. Years later I don't think they have gone past the capacity of the enlarged pilot plant.

See page 19
http://edeninnovations.com/wp-conte...entation-0b8dbe6c61ca8c72b5a50856e8d6cfa9.pdf

 

[kahuna1]

I have an enlarged Galah ? Will it help ?

So even if they got sales up 6-8 fold, just to break even, it would require a massive costly expansion. Thanks for that gem.

Cheers

 

[basilio]

I have an enlarged Galah ? Will it help ?

So even if they got sales up 6-8 fold, just to break even, it would require a massive costly expansion. Thanks for that gem.

Cheers

Actually Kahuna they would not even touch the sides of the current pilot plant capacity with a ten fold increase in sales ! Colarado stage 2 which is just the expansion of the pilot plant and paid for and completed in 2016 can produce around 2.4m gallons a Year worth $50-60m

As far as I can see total sales in 2017/18 might be around the $1.5m mark -- maybe.... If they ever get to the point of using the full capacity of just the pilot plant - it would be excellent.
https://www.asx.com.au/asxpdf/20190110/pdf/441sgf8q2b1ptp.pdf

 

[kahuna1]

dream on sadly >>!!

 

[Cam019]

Anyone been following this?

EDE looking interesting here. Type A Bullish divergence happening. Some significant volume spikes happening on some narrow range down bars within the down trend since February. Someone/people are buying up a lot of shares. Price has tested support twice and it seems to have bottomed and is now holding above it. This could get interesting. Watch for volume confirmation and upward momentum.

 

[kahuna1]

Had a divergence for dinner and .... went straight through me.

Gee ... it was 6 cents ... NO 7 cents to 4 cents !! and that was Jan/Feb ... I think it stank less then than it does now ... and no need for a chart. This ... view late Jan ...

Oh my ...

I looked at their accounts ... and I am going BLIND again. Nothing new, for over a decade a black hole these guys and associated companies. Raised over 6 mill in 2018 and its GONE .... lets try 9.8 this year ...

Oh please, seriously ? Even if they doubled sales every year and at a margin of 25% how long till they break even at MINUS 6 per year ?

Hmmm now it has 1.7 billion shares ... at 4 cents ... a company that ... well ... is vaued by some at 68 million, has no sight of even breaking even, if ever .... hmmm

Thinking cap ... parent company even worse, drilled more holes and found nothing than a team of dentists whilst charging management fees that ... make me cry ...

Decisions ... decisions ... do I or ... don't I .??

AMMMM ... ahhhh .... pass !! sorry that last bit of divergence didn't work as well as the rest.

Take care.

PS I am sure their will be some story or whatever ... about this pup ... but until it makes some profit, or looks like it, verses a black hole, and woeful one it is, hard for me to get even remotely interested which will be never ... even if gifted to me.

PS. the answer to the above question, in Jan/Feb on where it would break even is around 10 times the rate of current sales. But of course costs would go up ... likely 10 times... so ... NEVER ? is the winner ?