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Apollo Healthcare Corp Warrants (03/01/2022) APHWF

Based in Ontario Canada the Apollo Healthcare Corp Apollo is one of the largest private label personal care product manufacturers in North America developing and manufacturing retailer branded and private label products for major North American retailers. Apollos products are sold in tens of thousands of stores across North America and its customer base spans across major North American grocery drug and mass merchandise retailers users as well as wholesale clubs. In addition to private label Apollo also manufactures products on a contract basis for many of its clients.


OTCPK:APHWF - Post by User

Comment by zalmonellaon Aug 20, 2021 12:49pm
189 Views
Post# 33740209

RE:RE:RE:RE:RE:RE:Bad time for release.....but not all negative

RE:RE:RE:RE:RE:RE:Bad time for release.....but not all negative

I think investors should be concerned with current management's ability to stop the slide in revenue. That may continue given their reputation and relationship with Costco & Walmart is now lower than most other retail brand alternatives. Poor customer service (including but not only recall) did that. Once that is gone, it will take years to get back. They are no position to acquire anything in their current situation.


How do you know abouty their relatioship with Costco and Walmart?  I haven't seen that and would welcome the info.  Nor do I know about their customer service. 

I spent a few years in food and drug early in my career.  It's a brutal business with low margins controlled by the big retailers, but the relationships that are built there endure for long periods. A recall doesn't generally affect them.

AHC has one advantage - a new plant with supposedly good equipment running below capacity. That will always win out over an old plant with an aging workforce. But since the relatioships take a long time to build, it may be years before they can pick off the big business they've gone after.  Hand sanitizer was a chance to do exactly that but it may have fallen flat with the recall.

AHC advertises as a prpemium line, but where can you buy premium these days?  Short of on-line or in the beauty salons?  There aren't department stores any more moving huge amounts of product.

They are no position to acquire anything in their current situation.


They have $45M in cash and a $50M credit line. That's plenty to grow a big business. The problem is I can't imagine what they would buy that isn't already priced at a premim.
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