Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Play on, playa. I’m not getting in your way.
Just make sure your admission of “we have heard late stage acquisition for months” doesn’t become cause for a good forehead slapping in the very near future. Doh!!
And does that include labor and materials for all of the signature tab stickers?
The significantly large amount of legal fees that the company acknowledged today as being late stage acquisition related and the intended uses of the credit insurance policy that couldn’t be disclosed are very good indicators that the ‘pattern break’ you mentioned is closer than I would want to guess.
The last statement the company made prior to today’s call regarding their inability to comment on the late stage M/A included the word ‘negotiations’. The CFO’s statement today regarding the associated M/A legal fees and his inability to comment was ‘because they have not yet closed’.
He may have been gagged on the call but he was screaming in the filing:
Legal and Professional fees for the 3 months ending 7/31/19 = $266,592 (Most recent Q)
Legal and Professional fees for the 3 months ending 4/30/19 = $76,538 (Prev. Q - included BLF acquisition!)
If they conservatively anticipate $50-$100 million in revenue from the BLF acquisition after roll-out, what do we think an international credit insurance policy and $200k+ in contracts and closing work is going to get us?
Yeah...that policy is on ice. Paraphrasing - “a lot of benefits to that policy that will be announced”.
Boom - “$200k increase in legal cost....cannot comment on M/As, but suffice it to say - legal contracts work in late stage aquisitions is significant”
Hope they drop the Q after close. Would love to have some evening reading material.
I see a butterfly, mountain and Thomas Jefferson.
Yep, that's an easy nickel - clear as day.
My guess is that the Q is going to show the company has been very profitable for several months now - with multiple, cyclically increasing revenue streams...and therefore significantly undervalued (see GermanColumbia’s stickied post).
The chart players alone were taking this to the next step up, but I have a feeling there’s going to be a lot of extra icing on the cake.
So 10Q either Monday or Tuesday and CC @ 4:30 pm EST on Tuesday. Going to be a nice week.
What’s the record for number of Green Days in a row, Johnny?
You’re definitely on to something, Pr.
I keep thinking back to the last three financing agreements. The first two had .10/share conversion rates if Verus did not repay the loans. The latest was at Libor +3. Those lenders had to have seen something that inspired a tremendous amount of confidence in the company’s short term growth/revenue.
I’m also assuming a PR will hit highlighting all of the accomplishments from the quarter. Safe to assume they’ve got it figured out. Prepare for impact/lift off.
Someone’s planning a blowout this weekend at .0315. WTF?
Slow, steady climb. Fast and furious growth.
Everything about this company is impressive.
Uhhh, Roger that JV....8 Green Days in a row. Repeat - that’s 8 Green Day’s in a row.
No problem, King. I think Nest and Shinook have hit the nail on the head here - Verus purchased an existing, revolving supply contract (not a company) from an existing company in the region that is either changing focus or needing cash (or both). Verus isn’t manufacturing anything, they’re sourcing wholesale products and supplying them in the region for margin - high margin.
The fact that there have now been two non-target acquistions (one actual acquistion - Big League Foods and one operational acquistion for which I'm assuming Verus has aquired existing product distribution agreements/contracts and not an actual company) and we have been told each time that 'this was not a previous candidate' leads me to believe that there are not only more acquistions but that the current durations involved in negotiating and finalizing any agreements are substantial and could have an enormous, immediate impact on company valuation.
I think that's a huge value here. Similar to the BLF deal which is turning into a cash cow, revenue machine - except this aquisition gives them existing shelf/freezer space in who knows how many more stores and more revenue streams within 30 days...all with no shares issued.
Interestingly enough, I found an international food company (40 yrs in business) based in the UAE who seems to have shifted it's focus from frozen vegetable distribution to manufacturing and distributing its own ice cream brands from their recently constructed state of the art manufacturing facility. This company already having the network and freezer space in place would certainly benefit from a cash infusion as they transition to a different revenue model.
No doubt, Pr. Multimillion dollar trade insurance policy announcement is part one. Part two is what it serves and who/what required it to be in place.
You’re in the food/distribution business - an international credit insurance/trade policy that size (or any size) from a world renowned firm doesn’t just get procured arbitrarily.
And not to take anything away from the company because this team is executing flawlessly, but these latest announcements (the Libor+ LOC from The Columbia Bank and the Euler Hermes policy) almost seem like they could have been designed and orchestrated, or at least helped along by an influential outside interest...who is intent on getting their new partner positioned and equipped with the resources needed to execute on their end.
Just my 2+++++++ cents.
Yeah, I don't think you get a $13.5 million dollar international credit insurance policy just to put on the shelf in mom's china cabinet.
I'm thinking back to the climb before the last Q and seem to remember all of the positive news about investment and investors and growing backlog and then the Big League Foods aquisition with the Major League Baseball licensing deal came out of left field. And if BLF hasn't been riding under a trade insurance policy - wtf are they going to drop that needed a policy of that size?
Did I mention we are now in an identical chart position to when we started our last huge step up...and the catalysts are exponentially larger?
I definitely see the green hammer, Joe...and what appears to be the sword of destiny.
I'm no chart expert, but do I really need to be with $VRUS?
Shinook, we’re on the same page.
Buying a company and owning a major stake in a company are very different things. Think Altria and CRON or an opposite scenario but similar relationship - Altria/Philip Morris and Kraft Foods. It’s an investment into existing operations and leadership so as to avoid expanding an existing company structure.
Verus would be able to continue/increase operations as well as unlock backlog with the infused capital. The investing company gets to put its products into Verus’s existing networks and markets and opens doors to additional networks and markets so if/when Garnock wants to utilize Verus there is an abundance of new channels and resources.
It’s a win for everyone involved, including retail shareholders.
I still think acquisition, but to clarify - a majority stake acquisition. Considering all of the talk about “providing value to shareholders” lately, which is an excellent platform to negotiate from, especially when your executives are all shareholders and Garnock and Berndon hold huge, it makes perfect sense.
Commercial credit at Libor +, Credit Insurance with a world renowned firm, Fully owned subsidiary with Major League Baseball licensing deal (and new national logistics manager), GCC (Office in Dubai), MENA, Europe, Asia and U.S. supply chains with $100 ++ million backlog, fully audited financials and upcoming 10q very likely to show the company now operating in the black...assume capital coming from a company acquiring a majority stake unlocks the backlog and run some quick numbers (trigger warning - the following contains the term reverse split):
$100 ++ mm backlog. I’m using $125 mm
$13.5 mm in insured shipments 24x/yr.
$14 mm rice/honey
$??? BLF @full rollout ($40 mm conservatively)
Valuation @ 5x revenue ($500 mm) = $2.5 b
If Acquiring company receives 50% stake, o/s increases to 4.3(about?) b shares = $0.58 SP
10:1 reverse split = $5.80/share = NASDAQ
Is it before 2020? Who knows - everything is in place but the operating capital, but even that is coming in now. And, the company has hit every target thus far.
Spot on, horst...but I think it was $13.5m, so add another $6m in revenue to the pot!
Yeah, you don't just go to the insurance company and ask how much insurance you can afford.
Verus - "Hello, I'd like $13.5 million dollars of insurance please"
Euler Hermes - "What would you like to insure?"
Verus - "Eh, whatever."
For a policy to be in place, there has to be some known factors and a level of security at both ends - supplier and vendor. Euler Hermes isn't going to garauntee payment for a product Verus is distributing if it was made by downandout and the purchase order is from Arrakis.
I think we'll know more soon. Chances are, the supplier may not require product payment from Verus upfront with this policy in place.
I certainly appreciate your opinion.
I just think you've presented to the board a strong case of 'conclusion without context'. A line traveling in a direction can change course at any time or place. That's where context would have been helpful in your dissemination, because it just comes across as trolling.
And your credibility isn't hurt. It's still out there somewhere - waiting for you to find it and show it to us.
Not bad, but 'Triple digit' isn't limited to %100 percent, especially in 'hyper'growth phases.
I don't think it's going to take long to get to 100m in revenue. The company is scaling up very quickly.
$13.5 million credit insurance from Euler Hermes isn't a lump sum for the year, it's an umbrella for anything in transit. Once Verus receives payment for delivery there's more room under the umbrella. If they only turn insured product once a month you're at $162 million in revenue. I don't think twice a month is out of the question if fulfillment is at the dock or distrubutor.
I still think this policy was dictated/required by a large supplier who intends to use Verus as a distributor. I don't think it will be used for all products being distributed. It wasn't in place for intitial BLF rollout so it's not unreasonable to me that they are forecasting $162-$324 million plus BLF revenue, per year, in the near future. They have told everyone who is listening that hypergrowth has begun. I'm seeing it bright and clear.
Casting aside your previous challenges with decimal placement - does your chart exist in a vacuum? Does your analysis account for any applied market forces, positive or negative - what are they? How many colors are you using in your chart? Are they primary colors? How many of the 30 years of northern Ontario mining exploration experience are you applying to your analysis?
These are the things we need to know to make informed buy and sell decisions. Stop holding out on us...
‘Credit Insurance’ is such a nonchalant term and I fully expect to read part two of this announcement very soon. I would bet with high confidence that this is a performance bond that Verus secured in accordance with an existing and/or soon to be executed supply contract with a large supplier...and I don’t think this is BLF related. Using an international poultry supply contract as an example - this insurance provides the poultry supplier with payment guarantees and most likely allows Verus large product supplies without the upfront payments to the supplier. The question now becomes how many times per month/quarter can Verus cycle $13.5 million in covered product internationally and how much additional revenue is being generated outside of the credit insured revenue. On just rolling the stated insurance amount monthly (this is extremely conservative), we’re looking at $162 mm per year.
“Euler Hermes has been in business for more than 100 years and operates in 56 countries, so credit insurance bearing their name carries enormous weight with suppliers throughout the world”
Again, I think part two reveals the supplier’s name.
You certainly aren't digressing and it definitely wasn't alliteration.
Uh...nope. The company is Verus, with an 'e'. Maybe the problem is in your keyboard.
https://en.wikipedia.org/wiki/Verus_(gladiator)
It's Suvorov not Savarav, right? Who know's which 'Verus' the creator had in mind, but we can reasonably rule out by spelling alone that 'Varus' wasn't on the table.
Good luck to you.
Different type of fan base, Shinook - and as ironic as it may be, the Nationals don't have the wide spread base or recognition that the initial teams in the rollout do.
Verus definitely knew what they were doing when they selected the initial markets. Remember - we should also be expecting news on a fulfillment center, which may just get these initial rollouts nationally available.
Good Morning, all - Even you, Savarov.
Wish I was in a current distribution market, I'd be having some Bases Loaded ice cream for breakfast.
No...it's definitely Verus, not Varus. Too easy.
Nest - found a piece of the ‘disruption side’...
Or at least 9 billion clues:
MENA Nutraceuticals
Fun fact from the article:
Here you go again, shotsky. The only thing missing from your post is the phrase “I remember when candy bars used to cost a nickel”.
And if you actually read all of the requirements of the major exchanges, that $4 SP for major exchanges isn’t...never mind, you don’t actually read or know anyway...you just present your opinions as fact - which have been debunked on multiple occasions here.
That is the beauty of being both fundamentally sound as well as operationally and globally diverse - not to mention the fact that there is a proven track record of reaching each and every goal they have set for themselves except for the last one - the uplist to a major exchange. The unquestionable, audited paper trail showing each milestone on the path already being reached gives me every confidence that the final goal is not far off and all of the cards will soon be shown.
GC, you are the truth and nothing but the truth, Sir. And your post history proves this beyond a doubt - unlike so many others posting here!
I hear the Kahn Academy is excellent and free - no student loans!
Is this the Monster…hiding in plain sight?
Something that sparked my curiosity in the Verus corporate presentation was the very purposeful use of the Tyson brand logo positioned directly next to the photo of the Spinneys Grocery store (Page 14). It still strikes me as very bold.
Verus Corporate Presentation
Tyson’s share price is up huge this year and the company has been on an acquisition conquest with a focus on international targets and distribution (meat and plant based protein). I highly recommend taking the time to read the recent articles linked below.
Tyson Foods CEO Looks to Make International Acquisitions
From the article:
“A broader international presence would make Tyson less reliant on the ups and downs of the U.S. meat sector, where processors like Tyson, Pilgrim’s Pride Corp. and Hormel FoodsCorp. are grappling with low prices and growing meat supplies.
“It is in fact spreading the risk if you do have operations in countries outside the United States,” Mr. White said.
The U.S. meat industry faces challenges as chicken and pork production rise to record levels this year, according to U.S. Agriculture Department projections. Cheap and abundant meat has sharpened the competition between low-cost goods like hamburgers and chicken nuggets and has cut into chicken demand for suppliers like Tyson.”
“Tyson in August struck a $2.16 billion deal to acquire Keystone Foods, a major meat supplier to McDonald’s Corp. and other restaurant chains. That deal, which Tyson expects to close by mid-2019, will add new U.S. plants along with facilities in China, Malaysia and Thailand. Tyson executives said Keystone’s international facilities over time could produce more products for sale across the Middle East and northern Africa.”
Why Tyson Foods Stock Popped 51.2% in the First Half of 2019
From the article:
“Tyson Foods further spurred its momentum with its acquisition of the Thai and European businesses of BRF S.A. in early June. The purchase positions the company to capitalize on substantial international growth opportunities, especially as industry experts believe roughly 90% of global protein consumption growth will occur outside the U.S. over the next five years.”
I think it goes without saying that Verus values its investors at every level but it is very apparent that the company operates and executes with a focus on large scale, institutional investment. The corporate presentation was not tailored for the retail level...and if you’re a $25 billion dollar company with executives focused on expanding in Asia (Southeast Asia is primarily Islamic), the Middle East and Northern Africa (MENA), a company like Verus already offers:
- An enormous ($100 mm +) existing backlog
- Is forecasting triple digit growth for the next six quarters.
- Will most likely be profitable as of last quarter.
- Already distributes and rebrands your products in region(s) where you
are focusing on expansion.
- Existing Verus GCC business pays 9 to 1 in revenue.
Excerpts from the corporate presentation:
Page 5 - Verus has significant experience selling into the Gulf Cooperation Council (GCC) countries via its operations in Dubai. This is one of the fastest growing food and consumer product markets in the world.
Page 13 - In many of our markets, Halal (Islamic food handling regulations) certification is an essential requirement in product labeling. We have significant experience with this process. In the GCC countries, our products must meet both Halal and USDA standards. Halal Experience is an Advantage for Verus. Halal expertise makes Verus a desirable partner for firms looking to penetrate this massive global market segment.
Page 19 - Existing, primarily GCC business has a 9X multiplier in inventory turns where each $1 can generate $9 in revenue. The year-one multiplier for M&A is projected at 3X to 20X+ for each $1 invested.
Verus IR has responded to several investors that it is not taking uplist off the table for 2019 and has been in late stage negotiations with unnamed parties for a period of time that suggests both thoroughness and significance. The more execution I see by Verus, the more convinced I become that the company is the acquisition target – not the other way around.
Also, the P.O. Box in Dubai and reserved booth at Gulfood for 2020 says Tyson wants in but I don't find any Tyson product moving direct in the region...
Gulfood 2020 - Tyson