Sosandar Share Discussion Threads

[dancing piranha] 10/6/2022 16:18

Non-Exec Director buy (£10K), 5 weeks before full year results, I'm happy with that!

[dancing piranha] 09/6/2022 16:54

Added a few late on today.

Strange share price action recently, seems to be getting walked down!

MM's selling to us below mid price, large buys not moving the sp, but a few sells warranting a drop!!

I get the feeling there is a large seller in the system....

[onjohn] 09/6/2022 08:04

Needs another rights issue imho








You got know when to hold 'em, know when to fold 'em....


Got to know when to run

Next numbers will be so grim and reverse with massive spend on tv ads

15p
On rung down

[apad] 08/6/2022 20:01

Nice TV advert this evening.
apad

[danieldruff2] 08/6/2022 17:48

Yup, I'm back in as well today, looks undervalued now.

[apad] 08/6/2022 17:39

Bought some more SOS.
Thinking.
Small cap growth is toxic.
Consumer discretionary is toxic.
SOS is well managed, focussed and looks set to survive until the mood of the market changes.
apad

[w13ken] 08/6/2022 17:09

Yes 709 SOS items on the Next site, 346 at M&S, 284 at John Lewis and 85 at new partner Very Group (also on Littlewoods site as both are owned by Shop Direct).
I topped up the ISA this morning.

[apad] 08/6/2022 10:21

Well researched, simso. Thank you.
apad

[simso] 08/6/2022 10:18

Interesting to note the significant increase in Sosandar options available on the Next Website in the last month....it now totals 709 lines, which is c 40% of the available range. Six months ago, they had 326 options on the Next site...some 18% of the range.

The "step change" must be a function of the new fulfillment arrangement with Next, where demand is sourced from Sosandar's Warehouse, rather than sending a package of stock to Next Warehouse.

[dancing piranha] 07/6/2022 10:15

I couldn't resist, I'm back in, but showing as a sell obviously!

[dancing piranha] 25/5/2022 11:12

Full Year Results - 18th July. A while away yet....

Watching closely, but reckon I might get back in cheaper than 23p by then!!

[montynj] 20/5/2022 14:55

I've bought back in.Full yr results should be superb

[w13ken] 09/5/2022 14:01

Topped up SOS in ISA at 22.7p. Taking the long-term view...

[w13ken] 03/5/2022 19:55

To paraphrase Mike Tyson, every share is special until it gets punched in the face :)
Good luck...

[apad] 03/5/2022 17:33

maynardpaton.com/2021/11/05/bioventix-fy-2021-results-unveil-record-h2-profit-14-while-finite-troponin-income-shifts-longer-term-perspective-towards-pyrene-project-and-alzheimers-research/

W13Ken the above is a tour de force on BVXP if you are interested.

Actually, Maynard Paton is pretty much superb on all he publishes.

apad

[apad] 03/5/2022 14:53

FEVR is top and BVXP is next, W13Ken.
It is a pharma share, but I believe it is special and not vulnerable in the medium term.

24p is a pretty good target for SOS. I've got a lot of shares so would be looking for lower, maybe 23p, not sure.

apad

[w13ken] 03/5/2022 14:39

You're a braver person than me for having a pharma share as your #1 holding. I've been burnt by a couple of those over the last year.
Will look to top up SOS if it drifts down to 24p again.

[apad] 02/5/2022 09:45

I had significant hesitation over their previous finance man, W13Ken, but the new boy seems much more 'measured'.
Their large marketing spend in 2020 seemed less targeted than their current marketing and I was concerned that they would rush to go abroad (the link to the likes of Next removes that concern).
The IC 'sell' article at the beginning of 21 was poor journalism,, but the concern about another fundraise was real - I think that dissipated in April/May.
I was also concerned about Oasis (BOO) as a competitor for a while, but following SOS' advertising gave me more confidence and COAST (BOO) is much more upmarket.
The interview was very good. I didn't learn anything much that was new, but it brought together lots of stuff I had made notes on over the years.
Competition on price seems to dominate a lot of the discussions - particularly Shein and BOO but I have always thought that 'style' was of the essence. Fat man in a suit director of M&S decided which styles were stocked for the season back in the day - look where that got them.
They are now my third largest holding, behind BVXP and FEVR - amazingly, ahead of BOO, which was my largest holding before the price collapse. 😊
apad

[w13ken] 01/5/2022 17:54

40plus, interesting to read more about your background in fashion investing at ASOS and that you see some similarities with SOS.
APAD, I had no idea that you'd been buying SOS that regularly but I think we're on to a winner here. 6 months of profit shows that Sosandar have turned a corner and should kick on from here.

[danieldruff2] 01/5/2022 14:04

Thanks APAD, interesting points.

[apad] 01/5/2022 13:23

I suspect that SOS' customers will be less affected by the drain on discretionary spending than most.
We are down nearly 20% YTD.
I think this weakness is due to your point danieldruff2.
In addition to their customers being relatively well off they are now benefitting from sales through JL/NXT.
It has always been a bet on the duo and their design/market awareness.
I've bought SOS 77 times since 2018. Current average buying price is 19.8p.
This share price drop is bringing them back into my 'increase' territory. But no rush.

apad

A random extract from some of my notes, FWIW:

TV advertising that commenced in March has had a big impact. Continuing through Autumn.

email 40% revenue.

50,000 on social media but different from how young people use social media. Pleased.

Additional stock going into 3rd parties from Sept. for Xmas

Sosandar currently uses over 50 suppliers across multiple countries including Turkey, China, India, Brazil, Romania and Spain.
Not by boat.
Air freight up 300%

My take on SOS is that the tenor of their conversation was a conventional description of 'building up inventories', which they had been doing since the May capital raise for supply to M&S, Next & JL.
They also refer to additional stock going into 3rd parties from Sept. for Xmas
This is the polar opposite of the 'build & test' model that the likes of PLT make much of, and dominated the discourse in the early years of BOO.
If you look at the SOS designs they fall into categories. I think that the two women know their customers and have the confidence to build up inventories. I'm sure they will do 'build & test', but not to the extent of PLT and BOO.
If supply is disrupted for a long time they won't be immune, but it looks as if they had a head start from May.

[danieldruff2] 01/5/2022 12:01

There is supposed to be a big hit to disposable income later this year with rocketing food and fuel prices. Some concern this will affect SOS which is keeping me out of this share at the moment.

[40plus] 01/5/2022 10:46

Glad you found it interesting Ken - I also am here for the long term. Invested 4 years ago and so far with the top line growing strongly, I look forward to hopefully being part of a much larger business into the future. I was lucky to be an early investor in Asos in 2005 and find the comparisons so far quite interesting. I still hold 15% of my initial stake in Asos 17 years later having topsliced along the way.

Asos in 2006 were about 5 years in and had grown sales to 20 Million Pounds and had a Market Cap of around 75Mn. Sosandar 5 years in to March 2022 expect to hit 29 Million Pounds and have a Market Cap of approx 60Mn. In the next 5 years to 2011 Asos had grown sales to 340Mn and a Market Cap of 1.5Bn.

Yes more competition online now but I'm very happy with the Sosandar founders strategy and execution to date. My own 5 year forecasts to 2027 don't foresee the explosive growth that Asos had but I am still confident of a nice return from here.

[w13ken] 01/5/2022 00:15

Fantastic find 40plus - thanks for highlighting. I think it's really interesting to learn more about the background and the character of CEOs where I'm invested so interviews like this are great. Shares have taken a knock but I have faith in Ali and Julie so I'm a long-term holder.

Cheers,
Ken