Sosandar Share Discussion Threads

[tomboyb] 12/2/2020 14:53

nw9912 Feb '20 - 14:45 - 2610 of 2613
0 0 0
So it’s the next Boohoo then

ermmm -

lol!

[nw99] 12/2/2020 14:52

Nice one seems a lot of people are buying it today

[laughton] 12/2/2020 14:52

If only.

Have a big holding in both. The difference, as far as I'm concerned, is that the people running BooHoo are a lot smarter.

Not very happy here having now been diluted, yet again. Roll on April when we will hopefully get some good news in the update.

[montynj] 12/2/2020 14:49

I bought back in now. It's 17.75 little bit earlier.

[nw99] 12/2/2020 14:45

So it's the next Boohoo then

[montynj] 12/2/2020 14:33

Great news that they secured the placing around today share price and they got 5 million to spend on TV advertising.

[jackson83] 12/2/2020 14:07

yes the 5m funding is to be used on TV ADVERTISING

[jamesto2] 12/2/2020 14:01

the £5m to be spent on TV adverts advertising = much more funding needed later in the year / 2021 hmmmmm

[thelongandtheshortandthetall] 12/2/2020 13:55

Cool. Placing done. fuelled up and ready to rock and roll lol.

[forethought] 12/2/2020 13:54

All done. Didn't take long for the bookbuild to complete.

[davwal] 12/2/2020 13:40

If I shorted I would have done so at 30p...

Nothing wrong with the placing in the overall scheme of things.

[onjohn] 12/2/2020 13:27

BACK THE TRUCK UP AND DUMP UR LOAD

[jamesto2] 12/2/2020 12:37

SOS plenty dilution so expect 14p to 15p later this week

[tomboyb] 12/2/2020 12:07

Well done -

I'm not a buyer but this is probably the best thing the company could have done to try to achieve some success -

The future is prolonged further -

[forethought] 12/2/2020 11:59

Nice to see them getting on with it now rather than letting this drift and drift further.

[thelongandtheshortandthetall] 12/2/2020 11:57

I'm happy. This'll put a floor in IMO.
3 purchaes for me since the rns and all showing as sells lol

[eezymunny] 12/2/2020 11:36

All seems very sensible for a growth company. If they maintain growth rate of new customer sign-ups, levels of repeat business, margins etc then they really should go for it. It's a huge market and the growth will become self funding at some point.

Not without risk of course but some of the negative tripe on here is laughable...

[fillipe] 12/2/2020 11:27

17p placing..... £5m, today.

f

[bsg] 12/2/2020 11:26

morons who keep signing up to placing after placing after placing...... in the hope of..... goodness knows what...... (untold riches?)

Not quite, it's the PI,s who get the flipped shares who are the suckers. IMO.

[the millipede] 12/2/2020 09:28

IMO the critical thing is not so much the offer price, important though that is.

It is trying to understand if any future placing is truly funding growth, or just keeping alive a failing business running out of cash.

The sad fact is that AIM is full to the brim of the latter, mostly in the natural resources, and oil & gas sectors, companies that are never going to make any money but are kept alive by - not to put to fine a point on it - morons who keep signing up to placing after placing after placing...... in the hope of..... goodness knows what...... (untold riches?)

So I do get why people like profitability, even in start ups and high growth companies. Profits validate the business model, they make it very easy to tell if the business model is working or not. And profits make share price valuation more straightforward too. I think AIM has too big and too recent a history of being a haven for con artists, and sensible investors don't want that kind of risk.

But still, assuming the business model here works, it would be better for Sosandar's long term prospects to get their hands on as much cash now as they can, if at reasonable rates, and prioritise big marketing spend now, rather than wait and fund this through profits. The risk is increased, to be sure, and as such will and should hold the share price back for now, relative to a lower growth plan for early profits. But in the long term that kind of strategy has the potential create a far larger, far more profitable business and greater value for shareholders.

So IMO there is a good chance of a further placing at some point and, if that is to fund genuine growth in a successful business, that is fine by me. But SOS does not seem to be running out of cash imminently, as some above have suggested. So I think if the share price fall is based on the cash burn ideas some have been expressing, it ought to represent a buying opportunity for anyone who invests in this space, understands the risks for what they are and sees the massive growth opportunity offered.

[danieldruff2] 11/2/2020 22:10

The only real yardstick of how the business is doing will be the next placing done at either a discount or a premium to the prevailing price, anything less than 15p would be very poor considering the business looks to have made decent progress, maybe 20p is justified.

[the millipede] 11/2/2020 21:13

FWIW the Stockopedia report from Jan 20, not written by Paul Scott, but the other guy who does the small cap reports sometimes, Graham Neary, was quite extensive and upbeat, albeit there needs to be an understanding that this is a start up, and as such is not likely to be profitable for a while, and also as such is not a suitable investment if you don't like start ups!

Interesting flurry of posts today that seem a bit panicky. AFAICT the trading update was less than a month ago, it was broadly positive in that the company is doing what it said it would do, that is increasing marketing spend.

Which, and I am sure you could all grasp this if only you could stop hyperventilating, will cause a temporary increase in cash burn.

I would be surprised if the company felt any need to say any more for a while, either concerning the share price fall on low volumes, or about the state of the business over the past few weeks.

Meanwhile, virtually nothing this company does involves China, as kindly investigated and highlighted by daburd (see post 2577 above).

All in all, I think the share price fall is overdone.