Yowie making a come back

Yowie making a come back

YOWIE_foils

Yowie Group (YOW) have taken a beating over the past couple of years with the stock falling a whopping 84%.  I have been watching this stock very closely and feel now is a great time to buy some shares in the company if you are comfortable using a small portion of your funds to buy a speculative stock.

For those of you that don’t know or remember, Yowie are the chocolate treat with a limited-edition natural replica animal, or Yowie playmate, inside. Each Yowie playmate comes complete with a Yowie information leaflet, profiling the animal, its habitat, food sources, and threats to the animal and its environment. Each animal’s conservation status is colour coded as critically endangered, endangered, vulnerable, near threatened or not threatened.  Yowie playmates are designed to collect, swap and share in order to complete a collection.  They are a direct competitor of Kinder  Surprise, however, I think the company offers a far superior product.

The stock has taken a huge hit due to a number of factors. The first being sales did not meet some very lofty expectations and the company had problems with its previous manufacturer. The manufacturing issues are now behind them so we can expect the boxes of Yowie’s to be continuously distributed across convenience stores in America and now Australia with the successful re-launch in Australia this year.

The first time I bought my daughter one at my local SPAR (and yes this has become a weekly treat and not for the chocolate, we all sit around waiting in anticipation to see if she has got a Yowie that is not already in her collection) the guy behind the counter was telling me how they were walking out the store and this was even before any marketing dollars had been spent in Australia.

The company has around US$27 million cash in the bank and aims to be cash flow positive in 2018. The Yowie Group is looking to grow sales this financial year by over 55% which would equate to around US$30 million.

Go and buy some Yowie’s for your kids/grandkids and if they like them add the stock to your portfolio.  I did and currently own Yowie Group myself.

 

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