Sosandar Share Discussion Threads

[kmann] 23/7/2018 10:20

No disrespect Paul, but I've just cross referenced this valuation against a couple of similar stocks in the sector. I thought they were fair to high valuation, but this looks like it has gone too far too fast on a second wind. In fact its starting to make those reference stocks look cheap.

The current numbers even doubled or tripled look overdone.

Been a touch of short covering from 10-20p, and "Wind" assisted on social media too by the looks of it.

Not saying its a bad company, but seems way over fair price, even for a growth/value stock, for now anyway imo

[paulypilot] 23/7/2018 08:51

Plasybryn,

Have a read of the posts above, going back a few weeks.
We've already discussed the cash position.

In summary, it's fine for the time being, but I think there's a possibility the company might need to raise a bit more cash in 2019.

Given the stellar revenue growth being achieved, a small fundraising could probably be done with a few phone calls, in under an hour. It really isn't an issue. Given the larger market cap, then dilution would be modest - e.g. a £3m top-up fundraising would dilute us by under 10%.

My broker made some enquiries last week, and told me that Institutions are queued up trying to buy big blocks of shares, but can't get any fills on large buy orders. There aren't any big sellers at the moment (obviously that could change at any point).

As regards this share being "over-bought", that's not really a valid comment. The point is that the company's outlook has dramatically improved with the latest trading update. Therefore the share price is re-rating upwards, to reflect this great improvement in outlook. Therefore I see this as a permanent re-rating, and likely to be a stair-step move upwards - i.e. with pullbacks & then trading sideways, as weak holders exit, and Instis accumulate, then another move up, etc. We often see that with growth companies.

Value investors struggle to understand the valuation here, but they would, as value investors generally don't understand growth company investing, which is all about future potential, not PERs or divi yields. I do both value and growth investing, but a different approach is needed for each.

By the way, there are a series of malicious posts about me on another thread from michaelmouse (who is usually more sensible). He's lying basically - I have not colluded with anyone on SOS. I bought my shares totally independently of anyone else, because my broker introduced me to the company pre-IPO. I'm a long-term holder, currently with over 2 million shares. So please ignore his jealousy-fuelled posts!

If people don't like the valuation here, then don't buy the shares. Simples!

Best wishes, Paul.

[plasybryn] 23/7/2018 08:27

One wonders if they are in need of cash due to over trading/expansion, if now wouldn't be a good time? Is that a possibility please?

[superg1] 23/7/2018 08:16

You think ASOS will put up with an online clothes sales company which starts with ASOS backwards SOSA.

Personally I think not under trademark laws.

[ramas] 23/7/2018 08:06

Oh buying in tranches is the way to risk manage and buy stock without getting frozen out , basic stuff

[ramas] 23/7/2018 08:03

Doesn't need to be an ASOS just a 20 bagger will do fine , try the website or get the missus to try

[mirabeau] 23/7/2018 07:55

Yes, just be careful here. Scott's got a deserved and enviable reputation for spotting decent companies but I for one disagree with his call on SOS. SOS is not another ASOS

[superg1] 23/7/2018 07:53

Jeez the company has even used the Sos part of Asos. I'm not sure Asos will be to happy with that.

Sos may be very apt one day.

[superg1] 23/7/2018 07:51

Of course he's bullish it's a pump and dump by them on the back of Asos success.

1.6 mill revenue and a 36 mill M/C. Easy fodder to dump it to PIs for profit on the rise and leave PIs holding expensive shares while they then short it and point out the negatives.

Advertising is a huge cost if you want to get noticed.

[ironman22] 22/7/2018 19:37

mtpaz: MM is hear because he feels the need to try and trash every share that TW tips because of some twisted vendetta. MM, don't try and pigeon hole Sosandar into a binary 'punt' their are many many factors that contribute to weather a stock will or won't succeed and can be used to determine a stocks chance of success. Yes ultimately no one knows weather it will be a success or not but you can certainly use many factors to make a decision rather than make it a completely binary 'punt'. You say it's expensive and overvalued, since when did the market value any stock correctly and exactly, there are many many stocks which you would class as overvalued that the market does not and at the end of the day it is the market that values a company, not you.
'It's just guesswork until the business model is proven' Beat forecasts to y/e 17 by a considerable margin, on track to beat y/e 18 figures, near 50% margin, seems like the business model is working pretty well to me. You quote a £6 million loss which is true but you forget to mention that approximately half of that were one of listing and reverse takeover costs.

[montynj] 22/7/2018 19:37

The shares are very overbought...a decline to 25p would be healthy before resuming an uptrend

[nw99] 22/7/2018 18:37

Paul Scott very bullish

[nw99] 22/7/2018 18:37

Paul Scott very bullish

[alex1621] 22/7/2018 09:50

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.Warren BuffettA man is known by the company he keeps.Aesop

[barnetpeter] 21/7/2018 17:46

"It remains early days for ASOS, but since house broker Seymour Pierce is forecasting a pre-tax profit of £400,000 in the current year, giving earnings of 0.6p, its 4p share price seems rather derisory, and should be higher"


Sosandar might not increase 1750 times like ASOS but I reckon investors will be looking back in a couple of years and saying "why didnt I back that at 30 pence".

[barnetpeter] 21/7/2018 17:41

I bought asos at 4p and started a thread on here so you can check. At 25p some were saying that was a crazy valuation. Life changing.

The mkt for this type of fashion is huge; vast amounts are spent every year. I read that Kim K's new perfume was selling last week at a million dollars a minute. Yes a minute. Ladies Day at Goodwood; mind blowing amounts are spent every year at this and similar.


I think sos has an excellent product and website and is being very clever at promoting...just look at the celebrity section. They are just moving to footwear..and I reckon hats will be next.

If you want a safe stock this is not it...it is risky. If you want to buy something that is already making substantial profits dont buy this. You can get asos at over £50 perhaps rather than the 4p I was buying loads at.

[mauricemonkey] 21/7/2018 15:49

Right.
So you agree value investors didn’t like BOO either (and still don’t).
Thanks for clarifying.

[michaelmouse] 21/7/2018 12:53

mauricemonkey (main thread) - "Value investors won’t like it. Value investors didn’t like BOo at 25p either."

SOS's stage of development can't be compared to BOO at all Maurice. When BOO was 25p (it's low point following flotation) it was already profitable, cash generative and had plenty of cash on the balance sheet. It's p/e ratio was 30. Quite high but not too outlandish. In fact given the strength of it's balance sheet I did contemplate an investment but never followed through sadly. At it's current heady p/e of 77, it certainly wouldn't be one for me now.

Anyway, enough from me, if investors except SOS as a bit of a punt, then good luck to them.

[discodave4] 21/7/2018 12:05

mtI welcome other people's views, even those that are not holding.This is a start-up punt pure and simple, those that are spouting it to be the next ASOS are clueless IMO.DD

[mauricemonkey] 21/7/2018 11:05

Oh dear larva, did you miss the rise and now trying to get the price down?
In the short term, it *might* be a p&d.
In mid term, revenues for Q1 are nearly equal to the whole of last year’s revenue and the ipo costs won’t repeat.
In the longer term, it could do anything from go bust to being the online M&S.

If you track the social media then followers rise every day. The comments are overwhelmingly positive. They’ve got some target demographic “influencers” that seem to be doing great marketing.

Value investors won’t like it. Value investors didn’t like BOo at 25p either.

I’m long. Average purchase price 24p after a large top up at 28p.

[mtpaz] 21/7/2018 09:59

MM not having a pop at you here.. but if you haven't and won't invest here, why do you feel the need to post on this bb. Everyone is entitled to there opinion, and these forums are here to let people discuss and voice those opinions. I just find it strange you feel the need to voice your opinion on something you have no involvement in.