Oliver's Real Food Limited (ASX: OLI) shares are down more than 75% since it listed at 20 cents per share in June 2017 after management missed a series of forecasts over the profitability of its healthy fast food chain.
In fact the group has mainly posted losses as a listed entity which is why investors have dumped the stock since the IPO.
On July 26 the company reported an operating cash loss of $527,000 for the quarter ending June 30,2019 with just $1.16 million cash on hand, but then just three days later put out a confusing announcement telling investors it had in fact posted positive EBITDAI of $161,000 for the quarter.
Today it put out another unusual announcement to the ASX as its latest chairman boasted that it had enjoyed a strong start to FY 2020 and posted positive EBITDA for the month of August.
'With the company now generating positive cash flows, increasing with each successive quarter the board is now very confident that our profit result for FY2020 will be incredibly well received by the market," commented its chairman Nicholas Dover.
As if these forecasts were not enough the chairman appeared to claim there's "no doubt" the Oliver's share price is set to go up.
" There is no doubt that as the market continues to regain confidence in management and the board as we report a continuing improvement in all aspects of the company's performance, we will see further gains in shareholder value," Mr Dover commented in the announcement.
Let's hope a rising share price isn't another missed forecast from a management team that has failed to impress as a listed entity so far.
The stock closed up 9% to 4.7 cents today.
