Thought ASOS was a great buy a few years ago, and IMHHO Innovaderma will surpass their success. Stream of news coming out in the pipeline. Very happy days ahead.
Not sure about £30.00 but pretty sure good things will come of this share.
Its only just starting, if its other products take off like Skinny Tan and continue to be taken up in all markets, its going to keep rising.
Start turning an increasing profit and it will fly.
Why not? £30 might be conservative in the short/medium term.
- £30 would equate to c. £375m mcap. HC compares the potential of IDP to FEVR and cites the L’Oreal acquisition of IT cosmetics ($1,200m) and the acquisition of NYX cosmetics ($500m) - both valuations around 7-8 x top line revenue at the time of purchase. That considered, perhaps IDP may attain such a value with annual revenue near £40-50m, which may not be far off.
The success to date has been driven by SkinnyTan but consider the other brands - Body Glow, Charles + Lee, Stevie K, Prolong, Leimo. Rapid expansion and roll out in UK, US, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.
Consider the trading update and what wasn’t included:
?ST Distribution deal with ASOS
?ST Distribution deal with London Beauty School
?Skin whitening product to 600 pharmacies in Korea
?ST Distribution deal with Boots IE - instantly upped to 65 stores due to customer demand and will expand to Boots UK .
?SkinnyTan has >200,000 unique customers, over 24,000 deliveries per month and growing.
?Cosmetic brand Stevie K which “is going to be quite significant”.
- Very large portfolio of scalable brands.
- Excellent leveraging of social media & digital.
Clients growing by over 15,000 per month.
- Growing vertically and horizontally. In 3 continents and about to go into 4.
Sorry has to be one of the most ridiculous posts I have ever seen. £30. It’s my biggest holding so I like it but £30 just a utter ramp. It has a good chance of going up maybe to £5
It’s your biggest holding yet you think it ‘maybe has a chance’ of moving 33% from here?
Right. Obvious lack of foresight. Keep watch.
I think it’s. Good stock but don’t come on here putting down utter rubbish about £30 a share soon
30p is a £375m mcap.
They are up to 8 brands already and rapidly expanding into all major global markets, in multi-billion £ sectors.
It’s you talking utter rubbish.
We’ve seen upstart cosmetics brands NYX and It cosmetics alone acquired for more than that and IDP are going to replicate.
But you can sell at £5 and miss out.
Green morning .
Big rise since placing 14 Dec 16 @ 110p
Now 400p great expectations on this board !
They have a similar product to PLE
Skinny Tan firm InnovaDerma isn¿t a one-product, one-hit wonder, but a paradigm-shift in the way products are marketed
In the nine months since the stock listed last September, InnovaDerma¿s shares have surged by over 300p, or 400%, on the back of the success of its ridiculously popular Skinny Tan range
However, this isn¿t a one-product, one-hit wonder, but a paradigm-shift in the way products are marketed using social media
There is an old stock market adage that says it¿s better to travel than arrive ¿ and I couldn¿t help recalling this when I saw the share price of InnovaDerma PLC (LON:IDP).
It certainly looks over-bought (that¿s where expectations get way ahead of reality).
In the nine months since the stock listed last September, InnovaDerma¿s shares have surged by over 300p, or 400%, on the back of the success of its ridiculously popular Skinny Tan range, one of the biggest stories ever to emerge from the BBC¿s ¿Dragon¿s Den.
But 20 minutes into the conversation with the company¿s founder and chairman, Haris Chaudhry, it becomes clear I may have the wrong end of the stick.
This isn¿t a one-product, one-hit wonder, but a paradigm-shift in the way products are marketed using social media.
Okay, Skinny Tan is available in Superdrug, and InnovaDerma has products in Boots, GNC, Woolworths, Target and Chemist Warehouse.
Gaining shelf space in these outlets provides third party validation, and appeases the City that wants to see the firm¿s goods stocked in bricks and mortar establishments.
Real magic has been woven online
But the real magic has been woven online with its direct-to-consumer approach. It has become a marketing machine.
In the past if you had the money (it required a big budget) you could dominate Google Adwords and buy web banners and skyscrapers on high traffic sites.
Chaudhry and his 24-strong team of innovators have eschewed the traditional approach by creating an international brand using Facebook and its subsidiary Instagram ¿ and they have done so without breaking the bank. ¿It is about engagement,¿ says the InnovaDerma executive chairman.
¿You don¿t have to be a L¿Oreal, Coty or Rimmel to have a really good product.
¿You can have a really good product and articulate the message, find a core audience, have them as the lead adopters and then build on those campaigns.¿
That sounds like classic marketing speak, and Chaudhry does sometimes lapse into the jargon talking about filling the leads ¿funnel¿, conversions and KPIs.
But most of the time he is articulate and deeply passionate about the breakthrough he and his team have made on Facebook. They have turned it from an art-form into an exact science.
This required creating campaigns that engaged and resonated with the likely buyers of Skinny Tan, a self-tanning product that also claims to ¿contour and reduce the visible appearance of cellulite¿.
It was quickly realised the content had to be relatable and that women, the core market for the product, buy only when they receive a recommendation from another female they trust.
The team struggled early on finding its core market. They had assumed, wrongly as it turned out, that the main body of buyers would be young women. In fact they turned out to be a little older: in the 44-55 years age bracket.
Effort worth it in the long run
Finding that core market took time, experimentation and money, but the effort was worth it in the long run.
That¿s because the cost per acquisition plummeted once the company found the right demographic and was able to create multiple campaigns that appealed to that audience.
But Chaudhry says content was also key. ¿It had to be highly unique, engaging, relevant and had to have some sort of kick, passion, story or soul.
¿That¿s when people related to the story and the cost per acquisition for clients significantly reduced to a fraction and ¿a lot¿ less than anyone else.¿
Today its expertise is such that it can direct the marketing bucks at just about any group it wishes via Facebook & Instagram and it is building its own, valuable database of customers.
That mastery of marketing means there are other products in the personal care and life sciences market it is uniquely equipped to sell.
InnovaDerma aims to bring us products that have more than one use ¿ so Skinny Tan, as we know, tans and contours, while InnovaDerma¿s face brightening product in Korea has anti-ageing and sun care properties.
Focus will be on the female end of the market
It is fair to say its focus will be on the female end of the market; the hunt for more products to add to the hopper (which contains four already) will take a methodical approach.
¿We are not too different to an investment bank, which looks at an opportunity devoid of any product driven passion; (it) just looks for if it makes sense, a return, the risk and scalability, ¿how do we land that opportunity¿?¿ says Chaudhry.
¿We want to return multiples of what we have done, multiple products and multiple sector opportunities in life sciences, beauty & personal care.¿
The last trading statement underlined the traction InnovaDerma is gaining, with revenues for the year to June 30 up 80% at £9mln and underlying profits ahead 355% at £1.28mln.
But that¿s just the start, Chaudhry told investors recently.
¿Our ability to extend our flagship brand, Skinny Tan, to launch new products successfully and to expand our diverse portfolio of premium brands, together with a robust balance sheet, means we are strongly positioned for future growth."
Took a gamble on 30% fall … profit warning RNS.
Green morning will not say anything.
Limit in 127 ( D ) lifted 126p .
Sign it will fall more ??
Seemed to hit low @ 8.30 am buys showing @ 118p ( 6% lower then close )
Back to 124.5 @ 10 am.
The stock has its positive points, but the cash flow hasn’t been great, as is often the case for growth companies. From the interim statement, cash at the end of 2017 was £2.05 million, after raising £4.45 million from issuing shares. “Net cash used by operating activities” was £2.03 million. It was £0.30 million (used) in the half year a year previously, and for the year to 30 June 2017 it was £0.61 million (used). That’s all before the investment outflows, which were £0.17 million, £0.26 million, and £0.24 million, for the half to Dec 2017, half to Dec 2016, and year to June 2017. I don’t have enough info to project the cash burn. Management seem keen on investing for growth, but an item under “Strategy” in the interims could mitigate the burn:
“This successful digital direct strategy de-risks and delineates the business model, reduces the reliance on the bricks and mortar retail channel for growth, improves ownership of the client base and negates the need to spend significant marketing dollars to on-sell and cross-sell. In addition to enhancing cash flow with all revenues realised within a couple of days of ordering, we can access real-time market intelligence to optimise the development of promotional activities and new product portfolios.”
From the “Risks” section,
“The principal risks the Company faces relate to a) the regulatory requirements in each country to which it exports and b) cash flow. … Cashflow is another principal risk as, while the Company is in its growth phase, working capital is under demand to fund the purchase and manufacture of stock in concert with trading terms to retail buyers. The Group has alleviated this risk with recent capital raisings and stands well prepared to meet the requirements of it growth plans.”
The last sentence might mean there isn’t much to worry about. I don’t feel very reassured, but it’s a matter of opinion.
Maybe the rate of cash burn will be a lot less than in the latest half year, or maybe the share price will recover or some good news will lift it so new shares can be issued without excessive dilution, but I wouldn’t like to be relying on such things if I had a large holding. I commented on 29-01-18, “I’m long IDP, but only with a small holding because I think the stock is quite risky.”, and that hasn’t changed. If there are good reasons to be more positive about the cash situation, as a shareholder I’ll be happy to learn them .
Should of waited this fell all the way to 88.5p by 28 March.
Jumped up to 165 May 2nd.
Fell back to 100p by 29th May and now 120 still below my entry of 126p
Up to 143p on today’s 23% rise .
Green morning share , i grabbed this falling knife March 8th 2018 @ 126p , one that lifted below limit and headed much lower , the bottom was 88.5p 20 days later.
An example of why you should wait for it and buy on way up.
Tried to sell last week @ 146p lifted quickly after alert @ 147p limit @ 11.30 am.
Did not look at trade history see sales at 147.8 just before .
Busy but wiser to look at trades first.
Up to 190p just five days after another winner i have sold.
That is over 30 % more than i sold at .
Maybe better to just leave portfolio alone.
Thought i needed cash .
A good example of buying into the rise not selling.
Retracing today 175p still a lot better then my sell.
RNS … Today more space in stores up 23% to 207p early
before failing back by 10 am , just 6 % @ 178p ( early buyers would be down 17 % )
One i lost patience with this one only 13 days ago.
Now over 40 % higher then my sell @ 8.15 am , before the 17 % fall back by 10 am .
Example of buying into rising share i didn’t see anyone suggesting it .
Example of just leaving and not spending time looking at market ?
Example of selling into spikes on AIM .
I see this was a brokers tip to me ( G. M ) very volatile could of bought much cheaper after the suggestion.
Wow ( 20 September ) I see this has now fallen back to below my sell i was kicking myself when i lost patience so shortly before the RNS of three days ago when there was an 23% rise in response.
Down another 10 % today , put a limit buy in for 131p which lifted @ 129p
( oddly had modified a slightly different buy down to 129p when placing this one )
Other Buys showing @ 127p mins before ?
Bought back all the slice of six days ago . ( Approx 14 % below )
Very volatile ( even within the day )
Odd goings on today placed a limit buy on surprising drop ( stop losses ? )
@ 120p went strait through then again @ 117p searched to see if i had an older order on i had forgotten about .!! ( No )
Put sale on for 121p to correct only to then see a correction by broker @ 120 sale.
So 117p top up.