Koovs Share Discussion Threads

[mister md] 06/4/2017 13:32

Bottom line losses are expected. But losses at the gross margin level are not a good sign at all. Even if gross margins are positive in 2018, just how positive are we talking about? Overhead costs will still see this making losses overall. Thats when cash, the most important thing of all, becomes an issue.

[soggy] 06/4/2017 08:54

Growth and market share etc are all very welcome, but they have refused to say how much profit they are making. I could corner the market and achieve 100% growth in pretty much anything if I sell it at a loss. When are we going to hear about, let alone see, profits. And until we do I expect the share price will drift down. Investors are in here to make money.

[harebridge] 05/4/2017 21:24

Unfortunately, as Koovs is listed on AIM, many punters (mug) fail to understand how companies scale up growth in emerging sectors- it's part & parcel of it.

Koovs outperformed the sector & it's competition, who literally had to give their excess stock away due to demonetisation. The sector is slowly returning to normal & expect to see 100% growth to return.

Koovs avoided the heavy discounting & sacrificed some growth to improve margins, which was positive news.

Just look at the share options management have here. Mary Turner has over 7 million, exercisable in 4 years time. Lord Waheed Alli has over 38 million shares. They have plenty of skin in the game & it's in their best interests to get the share price up.

[avifx] 05/4/2017 16:20

From a purely technical perspective the price has bounced off the downward trend line across the tops which connects the 2014 and 2016 highs. This trend line came in at 56.50 and resulted in the rejection toward 47 where we now are. However given the strong support at 45 (the 61.8 fib for the uptrend from 2016 comes in at around 44) we can draw a line at 45 and view the price as being bottlenecked between this support and the downward trend line previously mentioned which suggests some imminent resolution - a break of the trendline and subsequent break of 56.50 should see price surge in my opinion.

[ih_491287] 05/4/2017 16:14

Harebridge-interesting post,thanks.

Given how much Koovs has outperformed its competition through demonitisation I imagine the Indian investors would be pretty happy with Koovs.

Given the large insider ownership and heavy option incentivisation of Board/senior management and their respective history at ASOS I imagine a quick fire sale would be the last thing Waheed Alli wants.My view is that he would want to grow KOOVS into a pretty large business and he does have the team to do this.I am in this one on a 5-6 year view.

[harebridge] 05/4/2017 15:08

Koovs chairman Waheed Alli is currently in India meeting up with major investors. I'm sure they'll be grilling him.

If the vast spends aren't producing the desired growth (not forgetting the negative margins), then our best bet would be a joint venture or a quick fire sell.

A 50% premium would get us 70 odd pence.

Now that Koovs is out of its closed period, maybe the directors who have been continuously talking this up, buy a few shares & put their money where their mouths are. This could instill a little confidence to beleaguered shareholders.

[harebridge] 05/4/2017 11:08

High-margin private labels are crucial to a fashion retailers success, said British businessman turned politician Waheed Alli, who is the chairman of Indian fashion e-tailer Koovs.

Alli, a former chairman of British online fashion and beauty store Asos, was in India on Tuesday to meet investors and suppliers.

Most successful fashion retailers including Zara, Asos and Topshop have a large chunk of their business coming from private labels, said Alli.


When you are serious about private labels, it makes you a fashion business and not a marketplace. Allis India venture Koovs has increased its share of contribution from private labels to 40% from 35% last year. We would like to take it to around 50%, he said. You don't want to make the share bigger because customers would also want choice.

Koovs has struck a partnership with Souq, arguably the largest ecommerce site in the Arab world, to take its private label collection to the Middle East.

It reported that its sales went up by 87% to around Rs 150 crore for the year ended March, 2017. Koovs, which raised funds of around Rs 93 crore from investors, including the Times Group, last year, is listed on London's Alternative Investment Market, a submarket of the London Stock Exchange.

Commenting on the current status of Indias startup ecosystem, Alli said, Its not a great time for startups here because investors have tightened their purse strings. Its time for consolidation and cost cuts. However, he was optimistic about the countrys potential. I dont think Indian entrepreneurs have done anything wrong. Everybody here is building new things. There are bound to be failures. It is definitely harder to raise capital but not impossible, he said.

Alli said he is glad to have invested in India. America is going into protectionism, Russia has political problems and Europe has Brexit. The only two markets that seem to have tremendous potential are India and China.

EDIT: both my brokers willing to now take 150,000 shares off me at 46.02p

[rackers1] 05/4/2017 10:10

you lost all you made on BOO yet HB on this dog?

[harebridge] 05/4/2017 10:03

Nice one Irish, just topped up with just over 3000 at 48pVery strong support at 45p, but looking strong at these levels. Under 40p, good luck son!

[duxy786] 05/4/2017 09:56

Carefully with the stops, the MM's may attempt under 40p

[irishlass2] 05/4/2017 09:52

Thanks for the retrace. Bought another 8912.

[harebridge] 05/4/2017 09:39

Was the trading update really that bad?Just check out the volumes & try a few dummy trades. 2 brokers willing to take 75,000 chunks off me no problem.That should give you a clue as to what is going on here.

[ckafetz] 05/4/2017 08:49

Last weeks gains being wiped out in two days :-(

[irishlass2] 05/4/2017 07:59

Hotaimstocks, told by whom? You are on dangerous grounds.

[ckafetz] 05/4/2017 07:44

hxxp://m.economictimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/private-labels-crucial-for-fashion-retailers-success/articleshow/58023384.cms

[harebridge] 04/4/2017 20:44

Equity research analysts at Peel Hunt have GBX 100.00 PT on Koovs Plc (LON:KOOV).

The rating was disclosed to clients in analysts note on 4 April.

Potential upside of nearly 100%

Great to see so much new interest here. It's abundantly clear that they are interested in joining the Bollywood party!!

[melody9999] 04/4/2017 13:52

Monnow - I'm with you....the only time I will consider investing here is after another massive fund raise which will significantly reduce the share price

Buying in on the basis of 100%+ sales increases is crazy. They are not even making a gross margin so more sales = larger cash burn

[petewy] 04/4/2017 12:38

agreed Monnow.

[monnow] 04/4/2017 12:08

Been watching with a view to re-investing, Ive seen nothing to warrant getting back in. Same story, they are growing but at a cost that they cant afford, they will go back to the market and dilute, profit is miles away I think.,, the tank is always on or near empty. I think it will turn one day and I will be in, but the can is a long way down the road, in my humble opinion.

[irishlass2] 04/4/2017 11:08

Expected sell off happening. Hoping to buy a few more below 50p, if possible.