This company continues to deliver. Yesterday Supreme released two RNSs. The first outlined a series of proactive measures to curb the rise in underage vaping and reduce the environmental impact of disposable vapes, and the second was a trading update.
I think it is very wise to be proactive in light of the ongoing discussions in the UK about the increase in underage vaping, and it is completely consistent with previous statements made by the CEO. I continue to believe that all of the bad sentiment surrounding this company due to discussions about single-use vapes and vaping by children is total bullshit (because I believe that measures will not have a negative impact on Supreme in the long term).
The trading update shows that management is indeed very conservative, and in the linked interview the CEO even says that this is the case and that they want to hit the numbers even if there are unforeseen hiccups along the way. They announced H1 revenues of at least £100m, which is already higher than my conservative estimates in my last post.
CEO interview: This company continues to deliver. Today Supreme released two RNSs. The first outlined a series of proactive measures to curb the rise in underage vaping and reduce the environmental impact of disposable vapes, and the second was a trading update.
I think it is very wise to be proactive in light of the ongoing discussions in the UK about the increase in underage vaping, and it is completely consistent with previous statements made by the CEO. I continue to believe that all of the bad sentiment surrounding this company due to discussions about single-use vapes and vaping by children is total bullshit (because I believe that measures will not have a negative impact on Supreme in the long term).
The trading update shows that management is indeed very conservative, and in the linked interview the CEO even says that this is the case and that they want to hit the numbers even if there are unforeseen hiccups along the way. They announced H1 revenues of at least £100m, which is already higher than my conservative estimates in my last post.
My 2 cents on the current share price development. No investment advice, do your own due diligence! The price drop in the last few days and especially today is completely irrational in my opinion. People seem to think that the worst case scenario is happening, which in my opinion is simply not the case. The sentiment around the company and its stock has long been driven by fears of a disposables ban in the UK. I think it's coming, but I don't think it's a worst-case scenario. Supreme made about £12 million from disposables last year. That's not even 16% of the vaping revenue, and the profit margin is much lower than the other vaping products. Would it be nice to have the disposables business? Of course, but it's not the driving force behind the company's success so far, and I expect Supreme to be successful without disposable products. Many people will switch to refillable or pod solutions, which Supreme already offers. By the way, disposable products are made in Asia, and the company doesn't have full control over them. I could even imagine that a ban on disposable products will be positive for Supreme in the long run.
This company continues to deliver. Yesterday Supreme released two RNSs. The first outlined a series of proactive measures to curb the rise in underage vaping and reduce the environmental impact of disposable vapes, and the second was a trading update.
I think it is very wise to be proactive in light of the ongoing discussions in the UK about the increase in underage vaping, and it is completely consistent with previous statements made by the CEO. I continue to believe that all of the bad sentiment surrounding this company due to discussions about single-use vapes and vaping by children is total bullshit (because I believe that measures will not have a negative impact on Supreme in the long term).
The trading update shows that management is indeed very conservative, and in the linked interview the CEO even says that this is the case and that they want to hit the numbers even if there are unforeseen hiccups along the way. They announced H1 revenues of at least £100m, which is already higher than my conservative estimates in my last post.
vaping category update: https://polaris.brighterir.com/public/supreme_imports/news/rns/story/w3j77jx
trading update: https://polaris.brighterir.com/public/supreme_imports/news/rns/story/rnonnjw
CEO interview: This company continues to deliver. Today Supreme released two RNSs. The first outlined a series of proactive measures to curb the rise in underage vaping and reduce the environmental impact of disposable vapes, and the second was a trading update.
I think it is very wise to be proactive in light of the ongoing discussions in the UK about the increase in underage vaping, and it is completely consistent with previous statements made by the CEO. I continue to believe that all of the bad sentiment surrounding this company due to discussions about single-use vapes and vaping by children is total bullshit (because I believe that measures will not have a negative impact on Supreme in the long term).
The trading update shows that management is indeed very conservative, and in the linked interview the CEO even says that this is the case and that they want to hit the numbers even if there are unforeseen hiccups along the way. They announced H1 revenues of at least £100m, which is already higher than my conservative estimates in my last post.
vaping category update: https://polaris.brighterir.com/public/supreme_imports/news/rns/story/w3j77jx
trading update: https://polaris.brighterir.com/public/supreme_imports/news/rns/story/rnonnjw
CEO interview: https://www.youtube.com/watch?v=175Te0qSR6k
My 2 cents on the current share price development. No investment advice, do your own due diligence! The price drop in the last few days and especially today is completely irrational in my opinion. People seem to think that the worst case scenario is happening, which in my opinion is simply not the case. The sentiment around the company and its stock has long been driven by fears of a disposables ban in the UK. I think it's coming, but I don't think it's a worst-case scenario. Supreme made about £12 million from disposables last year. That's not even 16% of the vaping revenue, and the profit margin is much lower than the other vaping products. Would it be nice to have the disposables business? Of course, but it's not the driving force behind the company's success so far, and I expect Supreme to be successful without disposable products. Many people will switch to refillable or pod solutions, which Supreme already offers. By the way, disposable products are made in Asia, and the company doesn't have full control over them. I could even imagine that a ban on disposable products will be positive for Supreme in the long run.