Sosandar Share Discussion Threads

[ramas] 20/7/2018 23:18

There's a lot I agree with MM but I think your arguments are very binary assuming we are all Zulu , but we have or should have portfolios with a mix of all types , over my investing career the biggest gains have come from the likes of SOS early starters, or contrarian plays which I guess avesco was in its times of temporary losses. Of course it's each investors money and approach to risk. One test was putting the missus on to the website , result was a hefty order with amazon like experience , the only risk here imho is putting the right stock out there and the directors experience suggests more winners than losers. If I'm wrong then I'll be upset but not broke this is no Zulu strategy here

[michaelmouse] 20/7/2018 22:40

Excellent post harebridge.

[michaelmouse] 20/7/2018 22:35

mtpaz - Totally incorrect about Avesco I'm afraid. It had a "huge margin of safety" when I bought in at the lows of around 20p-30p. The market cap. was around £6m and the company had net tangible assets (quality assets) at least 8/9 times it's market cap. Almost a no brainer. The only speculative thing about it was that it had slipped temporarily from profits to losses, but cashflow was good and it had a history of paying healthy dividends. Revenues were around £80m from memory. However, even with that margin of safety, whilst cautiously knowing it's potential, I never went too overboard in my enthusiasm.

SOS has absolutely zero margin of safety and is a pure speculation. An expensive one as well with it being valued at £35m on last reported revenues of £1.4m and recording a loss of £6m.

There is no comparison between Avesco and SOS.

Btw with due respect, I don't think your footballing analogy works really does it?

[mtpaz] 20/7/2018 21:32

Koovs is aimed at young 18-30s as is boohoo and asos, pretty little thing and nasty gal. I's sosander not different to all the above because it's aimed at 30-50s. With a much higher item sale price and higher quality longer lasting item.

[harebridge] 20/7/2018 21:23

I thought Koovs was the next ASOS!Comparing the two with now approaching similar market caps, Sosander has revenues of only 1 million pounds with a limited social media audience.I see Paul Scott loves this early stage online play, whilst loathing Koovs.It is all about scaling up growth in this saturated market, which costs money- ask Koovs, who literally ran out of dosh before being rescued by one of Indias richest men.

[mtpaz] 20/7/2018 20:18

When avesco was at 20p were you also on that bb saying it was a speculation stock rather than a growth stock? My point is every stock has to start somewhere, every stock at the start is speculative. When man utd signed ronaldo at the age of 17-18 they were hoping he would develop in to a world class player, could he fulfill the potential he had shown early doors. He was a speculation stock which turned into a huge growth stock. Then on the other hand you had Anderson who also signed when he was 17-18 hoping he would develop in to a world class player. He turned out to be rubbish!! So his stock was just speculation!!!

[michaelmouse] 20/7/2018 19:51

No problem alex1621, they were excellent posts.

ramas - value stocks come in all shapes and sizes and not necessarily with a dividend. Historic data shows they outperform growth stocks in the long run anyway. If you can identify them then it's best to find value and sit back as they turn into growth stocks. See Avesco below. Fabulous dividends alongside a share price appreciation from lows of 20p to the buyout price of 650p. Nothing like SOS though.

SOS isn't a true growth stock is it? It's a speculation. A growth stock would be a company on say a p/e of 25 with a proven track record of delivering double digit growth in profits over several years. SOS has not even got off the blocks yet. Investing in a company with revenues of just over a million quid and losses over £6m with a heady market cap. is pure speculation.

Still confused why Scott thinks SOS is good value tbh? Here's Scott talking about Avesco which was a great value opportunity that also became a growth company:-



2 minutes in he even mentions somebody called michaelmouse. ;)

[plasybryn] 20/7/2018 19:45

Be heard Plc?

[ramas] 20/7/2018 19:20

For 'a' read 'no' problem

[ramas] 20/7/2018 19:19

I'm a value investor BUT I also recognise the tenets needed to identify growth stories , as we are witnessing here with SOS , if the story remains true , which is the risk, then this will go far further than even the bulls like me imagine. That said I've not got a problem for value investors to look elsewhere and be happy to take a 5% divi , each to their own.

[alex1621] 20/7/2018 19:15

Thank you Michael. I looked at this company and thought I'd give my tuppenceworth ... as you can see it wasn't well received.

[mtpaz] 20/7/2018 19:07

michaelmouse are you invested here?

[alex1621] 20/7/2018 18:11

I think that's the problem, people following experts who are nothing of the sort in the belief that they can't go wrong. I don't invest in story stocks and couldn't care less whether you make or lose money ... I looked at the fundamentals of Sosander and disregarded it. Bulletin boards are for discussion and debate, so when I see the ramping that is going on here I think I'm entitled to give my own view ... if I were ramping this one to high heaven I wouldn't hear a peep from the likes of you.

[larva] 20/7/2018 17:48

Wray has just lost his shirt and panties on be heard plc

[larva] 20/7/2018 17:47

What I don’t understand is how £1.35m in revenues and £6.06m in pre-tax losses equates to a market capitalisation of £36.2m?


It’s basically paying out six pounds to buy one pound of sales

Big fundraiser on way and folks will crt st the massive discount

[ironman22] 20/7/2018 17:01

What is sad is people who post on bb's about stocks they are obviously not invested in trying to discredit them when they've had a bit of a rise. Maybe its because they cant stand the fact that they didnt invest and have missed out,I'm not sure but whatever the reason I think it's quite sad. I'm not an expert by any means but I think Sosandar has got a lot of potential and when people like Gervais Williams of the Miton group and Nigel Wray invest in a stock I tend to take a bit of notice.

[alex1621] 20/7/2018 14:52

What is scary is the number of people who throw their hard earned money into cash burning story stocks ... it is pure speculation. Please share your valuation model ... to help us with little understanding of accounting, analysis and business models?

[alex1621] 20/7/2018 14:46

I guess that you consider yourself to have extensive investor knowledge? Why don't you illustrate that to all of us by outlining your valuation model for Sosander? Given that it is an unprofitable and cash burning story stock I'd guess your calculations are essentially forecasts of an uncertain and unknowable future stream of cash flows? In your model when does cash flow turn positive? Given my ignorance about investment matters your musings would be greatly appreciated.

[terry topper] 20/7/2018 14:44

It's quite scary to see how many people on ADVFN don't seem to understand that the stock market is forward looking - historic numbers are utterly irrelevant if the next set of numbers are going to be radically different as is the case here.

[larva] 20/7/2018 13:38

0 0 0

So

40m cap
1m sales
6m losses


an interesting question, is if Sosander were to place new shares, who would buy them? It has never paid a dividend. Anyone putting money in would be doing so to stop it going pop. What sort of returns will be made on any investment in a placing? Investors wanting a growth share in this sector will look elsewhere. In fact, the immediate effect of a placing would be to reduce Potential future further, thus making the shares appear even more expensive.

[runthejoules] 20/7/2018 12:57

Wow, now I *really* wish I'd toppped up at 12.5p. If only a tiddly k. Paul's had a few punts go wrong recently but when he backs the truck up he's not usually wrong (dyor, I know he's not a tipster, etc etc!)

Will be buying any pull back. Gla.