MFB - My Food Bag

[Auto Rower]

MFB close today 72 cents ......all time low

The relentless grind down to lower prices continue

PS - autorower - that's nearly 18 months of MFB price action on that chart I posted ....I can't find any other stock to superimpose that MFB line

HA try harmony after the ipo plenty if I had the inclination ,I'm not saying any are better or worse ,but mfb bears no relationship as a business with mpg in so many ways to non be worthy of a comparison .
I see all the food stocks where down to all time lows yesterday getting  the treatment rbd & seeka as well .they would be a better comparison & more interesting

[Basil]

MFB close today 72 cents ......all time low

The relentless grind down to lower prices continue

PS - autorower - that's nearly 18 months of MFB price action on that chart I posted ....I can't find any other stock to superimpose that MFB line

I can't help wondering how first time naïve investors are feeling after the promotors told them to "Tuck In"...as though there was some great banquet to be eaten here.

[Auto Rower]

I can't help wondering how first time naïve investors are feeling after the promotors told them to "Tuck In"...as though there was some great banquet to be eaten here.

I have been in similar scenarios!! so I can imagine never want to be there again once bitten .
But really never been a fan of a business  that does not produce tangible products IMO ie products buildings machines etc
so mpg has always been on my watch list but never made it to a buy and unless I was shorting never will.
 Oh never say never !!!doh

[BlackPeter]

I can't help wondering how first time naïve investors are feeling after the promotors told them to "Tuck In"...as though there was some great banquet to be eaten here.

Great first lesson!

Always follow the money and consider the interest of whoever is making recommendations ;

If whoever sells the food recommends to Tuck In - hmmm

[winner (n)]

Hey Auto Rower - I know that that My Food Bag and Metro are completely different types of companies (ie in that context not comparable)

But my comparing the MFB and MPG share prices is part of an ongoing exercise in seeing how markets work, esp post IPO as result of private equity sell downs. In both of these IPO's the beneficiaries were the previous owners and the value put on the company was to maximise their returns with little consideration for the new shareholders. Invariably these companies fail to meet investor expectations etc etc and they fall foul of things of like market/investor sentiment etc etc. In some respects the demands/expectations on those companies become even higher and any small stutter in progress is punished with the inevitiable result.

You might think I'm stupid in doing things like this. But being stupid is one of the main characteristics that distinguish humans from animals. Animals have an instinct for their own best interests. Humans, by contrast, occasionally act in a way that is contrary to rational behaviour - and contrary to their own best interests.

That made me think that while much attention is paid to 'best practice' in business, perhaps we need to pay more attention to stupidity..... or things that don't quite work out to plan and take it as an opportunity to learn,

I've learn't a lot by studying 'impending train wrecks' over the years and that knowledge has saved me a lot of money.

The sad thing is that both Metro and My Food Bag are still at their heart good solid companies performing well but because of what private equity has done to them as the result of the IPO they are tarred by the market as useless dogs. I'm sure if they were still or went private again they would be seen as very profitable solid companies rewarding their owners well.

You may be right Autu Rower and MFB might reward you well from this point. I wish you all the luck but I'll continue my study and hopefully learn more.

I might take you up on your suggestion to include Harmoney on the chart - jeez, they were a sell down as well.

[BlackPeter]

Hey Auto Rower - I know that that My Food Bag and Metro are completely different types of companies (ie in that context not comparable)

But my comparing the MFB and MPG share prices is part of an ongoing exercise in seeing how markets work, esp post IPO as result of private equity sell downs. In both of these IPO's the beneficiaries were the previous owners and the value put on the company was to maximise their returns with little consideration for the new shareholders. Invariably these companies fail to meet investor expectations etc etc and they fall foul of things of like market/investor sentiment etc etc. In some respects the demands/expectations on those companies become even higher and any small stutter in progress is punished with the inevitiable result.

You might think I'm stupid in doing things like this. But being stupid is one of the main characteristics that distinguish humans from animals. Animals have an instinct for their own best interests. Humans, by contrast, occasionally act in a way that is contrary to rational behaviour - and contrary to their own best interests.

That made me think that while much attention is paid to 'best practice' in business, perhaps we need to pay more attention to stupidity..... or things that don't quite work out to plan and take it as an opportunity to learn,

I've learn't a lot by studying 'impending train wrecks' over the years and that knowledge has saved me a lot of money.

The sad thing is that both Metro and My Food Bag are still at their heart good solid companies performing well but because of what private equity has done to them as the result of the IPO they are tarred by the market as useless dogs. I'm sure if they were still or went private again they would be seen as very profitable solid companies rewarding their owners well.

You may be right Autu Rower and MFB might reward you well from this point. I wish you all the luck but I'll continue my study and hopefully learn more.

I might take you up on your suggestion to include Harmoney on the chart - jeez, they were a sell down as well.

Learning from human stupidity ... interesting concept.

On the positive side: There is an endless number of really useful examples to learn from, given that human stupidity is (according to Albert Einstein) infinite;

On the other hand ...

Humans find it really tough to learn from other peoples mistakes, which might explain Einsteins observation ;

Anyway - interesting subject, might even deserve a seperate thread ...

[Auto Rower]

Heck winner don't be so hard on yourself I think nothing of the sort ,I'm just making conversation & debating us Humans don't agree on everything as you know.
 Would be interesting to see all sorts of graphs I P O s, food industry at the moment as it is with the retirement stocks etc .
 Keep up the good work winner

[Basil]

Great comment Winner.  Invariably with IPO's in recent years this dog has run his well trained sniffer over what's on offer and found very little meat left on the bone.
 

[winner (n)]

Following the Metro playbook it wouldn't surprise me if My Food Bag came up with an acquisition.

For the instos not looking to good ..... so they'll demand GROWTH to rectify the situation .... and 'tell' MFB buy something .... anything as long as you can see its double digit eps accretive  .... that'll give the share price a decent boost.

Just speculation but you never know .... any ideas what they could buy Auto Rower

[Arbroath]

This has been a predictable debacle. An acquisition winner would confirm to me it will then head below 50 cents.

It's like that Kevin Costner movie No Way Out from the late 80's I think it was.

Hello Fresh is now bigger than MFB in sales. Maybe someone could make a play for MFB but are there any actual "synergies" to gain?

[Auto Rower]

Following the Metro playbook it wouldn't surprise me if My Food Bag came up with an acquisition.

For the instos not looking to good ..... so they'll demand GROWTH to rectify the situation .... and 'tell' MFB buy something .... anything as long as you can see its double digit eps accretive  .... that'll give the share price a decent boost.

Just speculation but you never know .... any ideas what they could buy Auto Rower

 Ha yeah the obvious one is mpg !!
 then they can rebrand to my food bottle   

[Basil]

MFB close today 72 cents ......all time low

The relentless grind down to lower prices continue

PS - autorower - that's nearly 18 months of MFB price action on that chart I posted ....I can't find any other stock to superimpose that MFB line

I have never seen a more consistent slope to the downtrend.  Down just on $1 in 18 months, and average monthly loss of 5.5 cents.  If the downtrend continues at a very similar pace it will be under 50 cents by very early 2023.   I suppose some punters will then say that's definitely the bottom.

[winner (n)]

Chris Lee in weekly update mentioned MFB's 13% yield - heck 13% is huge.

My Food Bag provided a brief update to market, lowering expectations for its full-year result in November.

Nothing in the update would have surprised those ''reading the tea leaves'' and watching the changing economic conditions around the country.

While customer numbers remain broadly stable, deliveries are down, earnings are down, and logistical problems are beginning to appear.

Customers are moving to lower cost (and lower margin) products, including its well-known ''Bargain Box'' product. The prevalence of Covid continues to plague the company, as it struggles to complete timely deliveries, a trend virtually every business is experiencing.

The share price continued its descent following the update, hitting fresh lows as bargain hunters, perhaps inspired by the 13% gross dividend yield, continue to pick up small volumes. Dividend yields, of course, are backwards looking and subject to change, especially when earnings are falling almost 10%.

https://www.chrislee.co.nz/taking-stock

[Ferg]

and logistical problems are beginning to appear

Do we know the basis for this claim?  Or is that simply around issues with timeliness of deliveries?  Timeliness in today's environment is not a major concern, but logistical issues within MFB would be a major red flag given I believe they had decent investment in systems etc recently...?

[Minimoke]

Thought this article  was interesting. Implies MFB might be doing ok. See the share price has come off lows, but still looks very cheap.

http://www.voxy.co.nz/business/5/404905

The only thing that can be said about such articles is they need a link to the original research.

Otherwise it is totally unreliable noise in an already cluttered and unreliable media landscape.