Cefour AB, CESI in wine tasting mode…

Posted: 20 December, 2015 in Published Investment Calls
Tags: , , ,

Cefour Wine is based in Åhus on the southern east coast of Sweden. The company produce, sell and distribute specially designed, practical and ready-to-drink wine glasses made of recyclable plastic.

Cefourwine media (commercial video, youtube)

Last year, CESI invested in Cefour AB and quickly sold the holding shortly thereafter. The outcome was a depressive ~20% percent net loss. However, a minimal loss in retrospect – and in relation – to the big picture. In 2014, the company was near a bancrupcy.

cefour

Obviosusly, the company encountered multiple major issues (The 2014 full years report and Jan-Sept 2015 interim report).

Now, the situation appears to be slightly more stable. The ongoing rights issue is guaranteed. After the most recent press release (see below), CESI speculates in a turnaround. CESI also believes in the Cefour concept and the accompanying global potential. CESI also belives in the new Cefour strategy. Currently and potentially, the market seems to share this relatively bullish conclusion, both in terms of…

the recent and current unit price…

cefour unit…and..

…in terms of today´s shareprice (0.04 SEK) compared to price per share in the guaranteed ongoing rights issue ( 0.3 SEK obtained from 0.42 / 14 read more)…

cefour week

Coincidentally, Easy wine (from Cefour), was served at the author´s (large) company´s 2015 Christmas party (via catering). The wine was surprisingly well tasting (in relation to CESI´s low expectations), and above all: “easy wine – easy drinking” resulted in a slightly too drunk author eventually joining the dance floor crowd (CESI normally avoids dance floors, primarily due to low quality DJ´s)

During the last days, CESI has been buying Cefour shares and rights issue units with an initial net +20% profit. Obviously, CESI has subscribed to the rights issue.

INSIDER PURCHASES

Recently, small insider purchases have been reported see link below:

http://www.aktietorget.se/InstrumentInsider.aspx?Language=2&InstrumentID=SE0006345195

CONCLUSION AND RECENT PRESS RELEASES

A high risk/high reward case? Today, a substantial and solid risk/reward ratio is impossible to predict. Survival of Cefour might equal instant success due to the very low Cefour market cap. Obviously, the worst case scenario would result in 0% return of investment. Due to the recent press releases (see below) and the guaranteed rights emission, CESI is bullish. After all, CESI is sufficiently confident that Cefour “aint a empty basement category company”:

“Cefour´s production techniques are high-technological and environmentally adapted. The ready-to-drink disposable wine glasses and the production line development are conducted in close collaboration with our suppliers.The result is one of the world’s most advanced production lines for pre-filled disposable packages, where machines and robots are linked into one complete manufacturing line. It begins with a roll of recyclable plastic at one end and comes out as pre-filled, sealed glasses allready placed in suitable transportation packages, ready for distribution. The manufacturing takes place in our own production facility in Åhus, Sweden.” Reference source link

The company´s priority is cost savings and focus (consumer segments and sales). Recent press releases indicates a possible near future turnaround…

  • December 15, 2015: Sales at Wembley arena

http://cefourwine.com/category/pressmeddelanden/

  • November 20, 2015: New partner at the Spanish market:

http://cefourwine.com/2015/11/ny-samarbetspartner-for-den-spanska-marknaden/

THE SPANISH PARTNER

http://www.1010premiumdrinks.com/en/company/index.html

Unfortunatelly, no financial information is found on the homepage of 1010 premium drinks. The facebook page has retrieved 15 thousand likes.

https://www.facebook.com/1010premiumdrinks?fref=ts

  • June 10, 2015: New order and concept for Bråvallafestivalen

https://www.avanza.se/placera/pressmeddelanden/2015/06/10/cefour-ny-order-samt-nytt-koncept-for-bravallafestivalen.html

  • November 21, 2014 Bear Smyth will launch pre-filled Cefour glasses in England under other trade marks (original title edited by CESI).

https://www.avanza.se/placera/telegram/2014/10/21/cefour-forfyllda-glasen-borjar-saljas-i-england.html

  • April 28, 2015, Cefour proposes to broaden the business

https://www.avanza.se/placera/pressmeddelanden/2015/04/28/cefour-breddning-av-verksamheten-foreslagen.html

Further reading: http://cefourwine.com/

.

Best regards, CESI

Disclaimer: The author, Cutting Edge Science Invest, is currently a Cefour AB share holder. Cutting Edge Science Invest can not guarantee, or take into accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered. Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”. The article/post does not contain professional investment advice. 

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