Ao World Share Discussion Threads

[babbler] 14/7/2020 07:50

Stunning results.

[thewheeliedealer] 06/7/2020 20:21

Hi all,

My mate Peter @Conkers3 and myself did a Twin Petes Investing Podcast a few days ago and part of our discussion covers AO. We also chatted about loads of other Stocks and as always a fair bit of general Portfolio Management educational stuff. Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want TPI Podcast 26) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[pinemartin9] 29/6/2020 14:26

This seems to be teetering on the brink. Which way will it go....up or down!?

[tim 3] 26/6/2020 11:14

Another thing to remember and why I dislike AIM shares in general, is they often trade on tiny volume so moves are exaggerated and more easily manipulated.

[pinemartin9] 25/6/2020 16:14

This is the share the Naked Trader just shorted publicly on his website:

Also shorted AO world. Made a lot shorting this before and it looks
to have risen way too much.

Sure, people are buying more stuff online but no profit
this a small one maybe next and a load of debt. What's to like?

[sphere25] 25/6/2020 08:29

Stocks are beginning to get clobbered out there. There was too much enthusiasm and some of the overbought conditions need to unwind.

AO is sat on key support. Just watching to see if it can hold support or whether it will get clobbered with the wider market.

It is hanging in there at present with buyers popping in around that 138 level. I don't know how you justify a £660 million market cap for a perennial loss making non-starter. Yes, there is more cause for optimism with the crisis but it still looks a nutty valuation. These covert trading updates don't help - no clear numbers. Should be an interesting read on the 14th July.

This stock has a habit of finding buyers in size who stubbornly buy at bonkers levels, then eventually the stock crashes back down.

[genierub] 08/6/2020 08:44

Tesco eh. If so this will rocket to orbit. Let's await the RNS......Eh Oh - Let's go. Rumours are circulating hard out there. Its got to be one of the big ones as you mentioned - Tesco, Sainsburys, Dixons.

Looks like its getting pretty leaky. They will need to RNS soon.

[jsforum] 26/5/2020 19:17

Agree - it would make perfect sense for one of the big 4 supermarkets to buy AO - my money is on Tesco who have dabbled unsuccessfully in consumer Electronics both unilaterally and with Dixons Carphone Any buyer also gets one if the best distribution networks in the UK - Expert Logistics and a mobile phone division

[tim 3] 26/5/2020 18:19

Could be , certainly the rise is quite something, doubling in a week!

[genierub] 26/5/2020 15:51

Tim - I think something big is coming. I can't put my finger on it but I got a feeling their next news lands around or before mid June and is going to show something special. Cannot wait. Just sitting back and enjoying the ride for now. I personally think they are primed for a T/O

[plentymorefish] 26/5/2020 15:51

You can't win them all rumobejo but you certainly win more than you lose....great posting today btw....

[rumobejo] 26/5/2020 15:44

sometimes you wonder wtf you have done :(

~130p :(

[tim 3] 26/5/2020 13:25

Looking at the chart on the upside if the good news/momentum continues 180 could be achievable as it was a key area of resistance in the past if that goes who know 220 or above?

Shares like this are high risk and although I think its unlikely bad company news or a sharp market fall could see them back down to 60 or lower very quickly.

Sorry but I really have no idea on price if a takeover bid appears.

[genierub] 26/5/2020 10:45

Nevertheless, can you can entertain some dummy prices for a T/O vs not please? It would help me greatly gauge the levels for this one.

[tim 3] 26/5/2020 10:33

I was previously quite bearish on these but I think the current situation has moved the online market on years with many predicting that some customers will never return to stores as they are now comfortable buying online, this could be a big problem for retailers like DC particularly with the tiny margins on electricals, DC's mobile division is already loss making and others with a huge physical estate and plays into AO's strengths.

Tough one on price targets as has come a long way very short time and internet operators are so hard to value may need to pullback a little or see some evidence of profitability and its ability to do well when shops reopen to see share growth continue.Its still a highly speculative share as previous performance shows any bad news could trigger massive sell offs as has happened before!

Good luck.

[genierub] 26/5/2020 10:02

I had the same companies pegged too. Read quite a bit online and reports are they have moved to a 100% lean online model and has essentially become the strongest etailer platform for white goods and electricals....better than Amazon (in these specific product categories). Their model is essentially like the Amazons where they have no front-end brick and mortar stores so I am happy about that. Will Amazon come for them? Don't know. But I got a feeling someone will. New articles are suggesting that every day has been like Black Friday since the Pandemic talks commenced. Curiously Tim - what do you think are short, medium, long and takeover target prices please?

[tim 3] 26/5/2020 09:45

HI

I think its strength in MDA (major domestic appliances) could be a particular advantage to competitors as its not as easy as other area's to enter as it requires a network of not just drivers but installers too and they have been very successful in this area.

Obvious candidates could be Amazon, sbry to strengthen its Argos position or possibly DC but its market cap, particularly now may put them off.

Not saying it will happen but its always a possibility.

A big test for these will be how they fair when physical shops open again.

[genierub] 26/5/2020 08:47

Tim you mentioned this could be a T/O target? Who do you think would buy?

[ny boy] 20/5/2020 13:36

John Roberts CEO live on Sky news now

[tim 3] 19/5/2020 19:11

Up another 10% incredible

[tim 3] 12/5/2020 13:25

Well done the longs here.

Was pretty negative about these mainly due to their inability to make sustained profits.

However I think things have changed since the epidemic Dixons carphone ceo said the other day that some customers may never return to stores and I think he is right.Now so many are used to buying online many will continue to do so and it will see an acceleration in the move away from physical stores imo.The fact AO have no stores and are well established is an obvious advantage and could make them attractive target for a takeover.

Not without risks as the negatives are still margins and what makes them stand out from all the other online operators but lets just say would not want to be short!

[jsforum] 11/5/2020 20:17

Nice ride here - Online sales are rocketing and AO also have contracts with Simba and Aldi - bedding & super markets are both in high demand

[shaggy35] 08/5/2020 09:25

Unless it is their supply chain that has been disrupted

[shaggy35] 06/5/2020 19:31

Once you get a big freezer you never go back :)

[mudmuncher] 06/5/2020 17:28

Not sure what fundamentals have changed. And there will be no end of nearly new little used freezers in a few weeks time