Sosandar Share Discussion Threads

[swanvesta] 01/12/2019 17:43

All you should be interested in right now is cash burn vs sales growth, and whether cash will last till profitability. Looking at it from that perspective it's not relevant whether assets cover liabilities. In fact it would be better for the cash position if it was the other way round.

[thelongandtheshortandthetall] 01/12/2019 17:31

I think we have to expect a certain amount of balance sheet jiggery pokery with any listed co.
Dangerous game esp with these hyper growth stocks. no profit yet and full of promise(s).

Looking forward to the Jan update. I'm expecting 125% revenue growth for q3 last year but I expect customer data base growth to be way way above that.

My largest holding so I'm particularly bias of course.
Good luck if you decide to buy in:)

[markhowes] 01/12/2019 16:47

So it would seem but I'm not an accountant so you should take most of what I say with a pinch of salt.

Don't forget though that a Balance Sheet is only a snapshot of a moment in time.

Managers could go and spend a million pounds on advertising the day after the Balance Sheet date and you won't know about it until the next set of accounts. Actually you won't know even then as they lump advertising/marketing costs in with administration.

[thelongandtheshortandthetall] 30/11/2019 18:53

Hey Mark
Am I reading this correct?

From interims

current liabilities:
Trade and other payables 1,226

Current assets:
Inventories 1,920


Not too bad then. Stock more than covers current liabilities.
Also assuming inventories are listed at cost rather than sold values that makes it even better. Possibly £2.5-3m in stock - guesstimate.

[markhowes] 30/11/2019 18:04

They will have used an agency and get minimum of 30 days credit. Usually 30 days from the end of the month in which the ads ran.

Even if the costs are not reflectd in the cash figure they will appear under Creditors.

[telbap] 30/11/2019 11:09

@thelongshortandtall..They may not have paid out for the tv advertising yet......Cash for selling on web is generated at point of sale..The cash figure at the end of Jan is the interesting one, after all 2019 costs have filtered thru salaries, bonuses etc. End Jan cash is the one that makes of breaks a year.

[thelongandtheshortandthetall] 30/11/2019 08:46

yes indeed.
All being well December will match Oct and Nov for 100% growth on same period last year.
We might get an indication of cash spend during this quarter too. I was pleased they still £6.9m at 30th sept. But they had only just started the TV advertising.
We must remember that cash generated from sales is also becoming more an more available to supplement the £6.9m balance

How long till they can fund themselves and growth - hitting critical mass. I expect they may need another placing to help with cashflows. Gaining market share in the short term could easily be worth a 10% dilution or so IMO. Unless they are able to negotiate credit, over drafts, loans etc. (they have explained why they haven't yet)
They might not need it though. If repeat customers keep purchasing we might be lucky as these are cheaper sales to generate and it could carry us through this still, tight patch.

I imagine TV advertising will be a lot more expensive during xmas so that might slow things actually.
Looking forward to the Jan update.

[daijavu] 30/11/2019 08:13

There was a trading update on the 9th of January this year so the next trading update might be around the 9th of January 2020. They have been issuing TUs every three months.

[forethought] 29/11/2019 13:22

The usual doom-mongers only had a half hearted attempt at an appearance here since the interim report. Makes for a pleasant change.

[silverfern] 29/11/2019 13:11

Seems to be a stock squeeze; nice to see though

[luafc] 29/11/2019 07:19

Dear Mr Ilis

Your comprehension appears to be limited. The company is in an investment phase.

[kenmitch] 27/11/2019 14:45

bigboyo

Why should anyone be interested in your “analyticsR21; on SOS when it’s possible to read quality comment from a retail specialist like Paul Scott on Stockopedia, who covers plus and minus points along with quality replies from other clued up investors?

If you can provide examples of your own good quality “analyticsR21; on SOS or other shares that would be helpful. Then those reading your posts will have a better idea of whether the content is likely to be worth waiting for.

[bigboyo] 27/11/2019 12:53

What horrible results. Will do analytics later when I get an opportunity but in my opinion these are shocking. Initial look at cash position shows cash burn is way off scale.

[jpsmithson] 27/11/2019 12:09

They are spending big to get this growth and will have to increase spend substantially again to achieve next years targets.
I have traded this but not convinced enough to be a long term holder at present.
The relaunch of Karen Millen and Coast online by Boo is aimed at SOS's target demographic. So there will be a change in competition going forward. Boo will use their experience with Influencers and provide an easy route for the ageing fast fashion youngsters to migrate upwards.

[daijavu] 27/11/2019 11:41

Paul Scot is on Stockopedia. He is on of their main writers and gives very sensible reports on all the companies he writes about. He is a fan of SOS and has a few million SOS shares. That doesn't stop him explaining the possible downsides as well as the good bits

[thelongandtheshortandthetall] 27/11/2019 11:24

Is paul Scot stuff behind a pay wall APAD?

[apad] 27/11/2019 11:12

The Paul Scott statement and interview encapsulates the story well, boy bach.
apad

[daijavu] 27/11/2019 10:53

Sellers have not properly assessed the future prospects for SOS. They just see the current cashburn.

[thelongandtheshortandthetall] 27/11/2019 08:32

markets waking up now :)

[someuwin] 27/11/2019 08:12

Excellent numbers. And still got almost £7m cash.

[thelongandtheshortandthetall] 27/11/2019 08:10

Agree bg23

The management are proving themselves.
Strategy working IMO.

[bg23] 27/11/2019 08:08

all looks very impressive and on track to my mind.

they should be congratulated on their performance so far.
nice to see the shares reflecting this recently