Brand Architekts (LON:BAR) (previously Swallowfields pre sale of manufacturing business).

Copied this from post just put in SCVR from couple of days ago. I suspect that BAR is a low interest stock but any views relative to my points below I'd be interested....

I had a look at this stock around the time of the announced sale of manufacturing for wedge of cash near market cap (a little less I think). Seemed attractive on face of it with a smaller but higher margin business left. However, I had the following questions and concerns:

1) Trading in the remaining brands business has been poor in year to end of June. I felt why it had been weak was not well explained in annual report

2) I observe that their brands are mediocre and probably lack pull with punters in any serious way and very victim to own brand and new brand and need to discount their stuff to sell it - all a bit Superdrug apart from Alice Hart Davis.

3) If 2 above is correct then they need a lot of ongoing new product development to keep refreshing and feeding the retail beast...that leads me to wonder whether losing the manufacturing arm will bring extra costs and diminution in product development capability...

4) To what extent was manufacturing an input on brand development

5) Departure of Tim Perman as CEO following announcement of manufacturing business sale is surprising as he's only been CEO since May would guess the sale would have been driven by him and his 'strategic vision'. To depart straight after its been agreed suggests otherwise. What's going on?...

6) They've got a shareholder base that whilst not activist includes a heavy disposition to investors that can be quite active with their companies plus some big individual holders. Perhaps the shareholders are running the show - at present BAR is without CEO or CFO and professional oversight of operations is being provided by two people who went with the manufacturing business

7) My guess from this is that Brand Architekts is not long for this world as a independent entity. Sold, closed or broken up? Dunno. Selling all as one might be hard as its a hotch potch of small middling brands. Closed doesn't make sense as that's money…

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