Ao World Share Discussion Threads

[paulypilot] 22/7/2014 23:07

Making a new low - it's an accident waiting to happen this one, at such a mad valuation. I can't get above 70p, and that's being very generous.

Looking fwd to bumper profits continuing to roll in (for my short, not the company!). This should collapse in price when the lock-ins expire, and before actually - as insiders might do deals with third parties to lock in the current price via a short CFD. Who could blame them.

I ask you - what a ridiculous business model - selling homogeneous electrical products through a website ... nobody else has thought of that - apart from everyone else selling electrical goods! So no margins, and oh we can make loads of money through ripping people off with warranties that they don't want - yeah right. Either people refuse them, or the FCA closes you down for mis-selling in a couple of years' time. Either way, this £1bn+ valuation is a nonsense.

Regards, Paul. (heavily short)

[pyemckay] 21/7/2014 18:54

cant get another short on AO now. IG wont allow. Any ideas who else allows shorting of AO?

[septimus quaid] 21/7/2014 07:13

I tend to think that the "market" is pretty good on its valuations, except where IPOs are concerned when they seem to completely lose their collective heads. Think Promethean for example.

For AO to maintain this valuation they are going to have to pump out a steady stream of positive news which, in a market already saturated with domestic appliance sellers, is going to be pretty tough.

[wirralowl] 07/7/2014 17:40

Nice big fall today, hopefully the start of a move to a more realistic valuation.

[lennonsalive] 01/7/2014 16:07

270p again!

[lennonsalive] 23/6/2014 09:15

Sell, buy or transfer?

[whatgoesupcomesdown] 21/6/2014 13:43

Any comment on 6 mil closing auction?

[lennonsalive] 20/6/2014 10:31

3 times at 270!

[liam1om] 20/6/2014 10:28

270 hit. Lets see what happens next. Amazingly over priced.

[lennonsalive] 12/6/2014 12:11

I'm waiting to see if this hits 270p (where it's been before) and carries on up or drops.

[liam1om] 11/6/2014 13:24

Also short here. This is the sort of company where one day the share price will suddenly halve.

Crazy valuation. I'm not sure why anyone would be buying here??

[lennonsalive] 11/6/2014 10:24

CPR, ASC, OCDO to name a few of the stupid ones, add AO. to that list.

[pyemckay] 11/6/2014 09:32

it is stupid just now nearing £1.2b

[lennonsalive] 11/6/2014 09:27

I'm out with a small profit.

Will look to re-enter when the market cap hits stupid time again.

[undervaluedassets] 10/6/2014 05:47

As an investor in DXNS it would seem that common sense has left the building here.

[pyemckay] 06/6/2014 22:55

still 3 and a bit months to go before the end of the lock in period. thats when there will be a rush to sell shares.

[seernb] 06/6/2014 21:01

I think the problem is that us shorts need to form an orderly queue.... :)

[fruitninja84] 06/6/2014 12:32

Seems to be defying gravity :/ I wonder who would but this ? My short is getting wacked !

[paulypilot] 05/6/2014 20:12

This one is just an accident waiting to happen. Ridiculous valuation, and very poor results today I thought - underlying profit actually went down!

So they are scaling up a business model with miniscule margins, and loads of competition. Why??!

I am also short.

Regards, Paul.

[lennonsalive] 05/6/2014 12:07

I couldn't see any OFT investigations anywhere, when I looked a week ago.

However, this is overblown and overvalued. Great short!

h ttp://www.spreadbetmagazine.com/blog/richard-gill-on-ao-world-awfully-overvalued.html

[wirralowl] 05/6/2014 11:58

Re-opened my short again this morning. Revenues up 40% yet operating profit down to £8.2m from £8.4m says it all really. Also as dewtrader said, think the majority of that profit comes from the insurances they sell, so if these are affected by the OFT investigations/stripped out, the business itself is operating on thin margins and barely profitable.

[rybnikcat] 05/6/2014 10:12

Revenues increased by some 40%, but the miniscule operating profit actually went down slightly? So the extra £11m spent on advertising was a bit of a waste!

I think I'll keep my short on.