A big chunk of capital tied up in inventory/stock in a down-cycle, which is exactly where you don’t want to be if the market stays weak.
And the SSL certificates on their website (company name without spaces or dashes + .fr) expired 7 days ago.. normally when I see such things it shows a lack of love for the detail. Also some product sites (Greek god name + .fr) do not work anymore etc., so at least based on their websites it seems only the main company brand is being properly taken care of.
Is it cheap even after discounting/applying a heavy cut on inventory?
It seems this company is being hollowed out by the main shareholder (take a look at branding, comingly of websites, e. g. deliveries to Italy are not made by the company active in FR)..
And, on the main shareholder, I think the co-branding is normal, but the issue for me is the fact that they could scoop up all the remaining shares if the stock price dumped to silly levels, and just delist without compensating minorities fairly.
A big chunk of capital tied up in inventory/stock in a down-cycle, which is exactly where you don’t want to be if the market stays weak.
And the SSL certificates on their website (company name without spaces or dashes + .fr) expired 7 days ago.. normally when I see such things it shows a lack of love for the detail. Also some product sites (Greek god name + .fr) do not work anymore etc., so at least based on their websites it seems only the main company brand is being properly taken care of.
Is it cheap even after discounting/applying a heavy cut on inventory?
It seems this company is being hollowed out by the main shareholder (take a look at branding, comingly of websites, e. g. deliveries to Italy are not made by the company active in FR)..
Thanks for the note.
This thesis was based on the following:
Front-loading inventory is central to the MG business model. It's a strategy to make it easier for their dealers and re-sellers.
They did stack up after COVID but unwound and normalised it within a couple of years. That was also deliberate, according to the reports.
The Dolphin brand is also really strong in its market. It seemed unlikely that they would have trouble selling that stock over the next year or two.
This was supported by the relatively quick unwind.
(As a side note, removing inventories completely still shows TBV at very similar levels to market cap.)
RE, the website, I view it here: https://www.maytronics.com/fr-fr/ (looks fine this end)
And, on the main shareholder, I think the co-branding is normal, but the issue for me is the fact that they could scoop up all the remaining shares if the stock price dumped to silly levels, and just delist without compensating minorities fairly.
I saw that page as well and the FR-version has some information about MG Intl. But their "official" homepage seems to be or at least was:
https://mginternational.fr/
No redirection to the "new" site (basically the website of the parent company), no valid SSL, links to products and websites that do not work etc.
If you change language from the FR-page you will see that the counter-party changes to Maytronics Group etc.
Ahh I see what you mean now.
I'm guessing that might be because they don't 'trade' as MG International maybe?
Good spot.