Ellies is dying

[Daily Investor]

Ellies is dying

The once proud Ellies – which reached a share price of R9.50 with a market cap of over R3 billion – plummeted to 1c per share after today's trading update.

 

[MrGray]

The only real mystery is how it lasted so long with such poor product market fit…

 

[HermeticAnarchist]

Literal penny stock. If it goes up 1c you double your money...BUY!

(Not a financial advisor)

 

[TedLasso]

So wait, my R20k insurance for the power surge protected plugs is now void? Has anybody ever sent the paperwork to them?

But in all seriousness, feel for all employees. Not a nice time. Good luck to them

 

[dualmeister]

#ellieswednesday

 

[Asgard85]

Ellies made some fatal decisions almost a decade ago that they have never really recovered from.

In addition to its traditional businesses Ellies owned a thriving company which manufactured electrical equipment and had a strong projects division. Ellies pulled the trigger too early on the TV digital migration, thinking it was a shoo-in, bought altogether too much stock of set-top-boxes and in so doing tied up their money in stock and starved their cash-hungry projects division which included significant work in the REIPP space from round 1.

So they sacrificed the division that had huge potential, had a significant order book and which was poised to outgrow the parent in favour of their traditional decoder business which they simply could never see beyond.

They tried to pull the SAME thing with Bundu Power having already tried a decade before and failed, apparently learning no lessons in the process.

Unreal.

 

[UB40]

 

[gogga_]

Shocking news but not unexpected. Management ****ed up big time.

 

[UB40]

I better stock up on more Ellies surge protectors. We have 4 of them in our house for about 10 years now, touch wood nothing has ever blown up so either we have good luck or the surge protectors are doing their job nicely. It would be ashame if Ellies stopped making them and we were then forced to buy Chinese knock offs