Cellular Goods [LON:CBX] created much excitement in the market on news that its Look Better skincare range will be made available on the Sephora platform. It becomes the first skincare brand that employs cannabigerol to be sold on the Sephora UK platform.
Shares were up 230% on the deal. It is a massive boost for the stock, which had been looking pretty moribund over the last six months, and is still down 16% on that timeframe. Investors could be hoping for a return to the heady levels of 2 - 2.5p on the back of this news, but how realistic are these hopes?
One of my watchwords has been to sell stuff, you've got to sell stuff. That means putting it in front of consumers. Cellular Goods chairman Darcy Taylor puts it succinctly: "The launch bridges the gap between customer awareness and sales by making it easier for customers to purchase our products."
It is amazing how often this common sense observation gets lost in all the marketing spiel in luxury goods sales. Cellular Goods has been in rationalisation mode recently, with the cost base slashed by 56% and it filed an operating loss for H1 2022 of £1.8m. Which is huge, when you consider it reported half year revenue of £31,000 for H1 2022.
How does Cellular Goods stack up against its peers?
The company has managed to sign international supermodel Helena Christensen to be the face of its rejuvenating skincare campaign, and she in turn has access to over one million social media followers. What follows are my own observations on the stock and how it stacks up against some of the winners in the space.
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