Sosandar Share Discussion Threads

[thelongandtheshortandthetall] 13/2/2020 09:11

ideaidea
up 12% from placing price.. got around £9m in cash now and £3-4m in stock.
Most amount of customers they've ever had and they have momentum building with the marketing campaign.

Sosandar have never been in a healthier position.
Might sound like a ramp but there we go.

[the millipede] 13/2/2020 09:07

I think the point is that when you say the share price should be "lower" what you ought to mean is lower-than-it-would-be-if-the-company-were-making-profits, rather than necessarily lower-than-it-is-today.

You are completely correct, that this placing in all likelihood pushes profitability back. But I think we need a different set of metrics to be honest, to value this kind of start up.

Ultimately the marketing spend now should drive higher long term sales growth and by the time we get to the end of this year, the profit figure for 2020 will be irrelevant. This is why I can't really understand anyone focussing on 2019 profits - I genuinely do not care what they were as they do not help me understand the future growth prospects or to value the equity. They say nothing about the risks, nor about the possible future rewards.

What I do know is that, for me, the trading update was very positive - I first bought in here the day after as I thought the share price fall was crazy - and likewise the placing. I added yesterday at the placing price and I think there is now certainty in the short to medium term that will hopefully drive some share price growth. And I think it should become clear during this year if the business model is working or not. So far, in my view, the signs - both in terms of sales growth and in terms of institutions being prepared to provide funds - are good that it is.

[ideaidea] 13/2/2020 08:52

Not sure about this little upturn, I cant seem to press the buy button. Surely this will cause an even bigger loss short term and because of that risk seems to be slightly higher then before the placing, which makes me feel the share price should be lower. I completely get that this might lead to bigger profits later, just feel the risk reward isn't quite right.

[dgbell7] 13/2/2020 07:26

hxxps://www.thetimes.co.uk/article/greencore-grows-fat-from-the-rise-of-food-on-the-go-gsslfcttl
In today’s Times Sos gets a write up in their general market review.

[nw99] 13/2/2020 06:44

Fans are Fearne cotton , Amanda Holden , Susanna Reid . First ad last September led to a surge of customers . Marketing for the over 30's . Ambition to be next boohoo .Hold onto your hats this will rally

[abarclay] 12/2/2020 18:50

. Given the upfront cost of acquiring new customers against the benefit over the lifetime of the customer, the Company expects this investment to result in the net loss for the full year being higher than previously anticipated

[alex1621] 12/2/2020 17:37

£5m raised ... to buy sales?

[jonbirdy] 12/2/2020 16:50

It is amusing the tripe on here! The mistake SOS made initially was of course never raising enough in the first place.

Let’s not forget that one institution came to them with £5 million at 32p in 2018 which they took.

Other fundraising’s have not been best timed with the share price, true, but there is no shortage of institutions wishing to buy when they do fundraise.

Management have done exactly what they said they’d do regarding marketing and gaining customers. Either you believe in that strategy or you don’t. (I do).

It. Is. That. Simple!

[davwal] 12/2/2020 16:04

Oh good, I’ll add some more cheap shares then, abarclay...

[nw99] 12/2/2020 16:04

Just added more should test 25

[abarclay] 12/2/2020 16:01

Lots of 15p shares coming out soon be dumped i suspect when trading starts

[thelongandtheshortandthetall] 12/2/2020 16:00

beautiful!
:)

[davwal] 12/2/2020 15:38

Meanwhile the share price rises, lol..!

[tomboyb] 12/2/2020 15:30

Telbap -

That was sarcasm -

lol!

[someuwin] 12/2/2020 15:19

Although it has taken a lot more cash then they thought, they are making real progress.

Also it shows that building a new online fashion brand is not easy (and certainly not cheap). However that makes what they are doing more valuable as it reinforces the barriers to entry for competitors and makes SOS a more desirable takeover target. imo.

[telbap] 12/2/2020 15:07

Errr tomboyb Boo - 1.1 billion shares in floatSos - 169 (plus the 25m just issued to raise capital)I think sos have got a looooong way to go before they catch Boo

[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!