Sosandar Share Discussion Threads

[richjp] 20/11/2017 15:59

I question the viability of the demographic market here. The products seem to be aimed at the more mature or dare I say larger lady. These are not like the younger clients who use ASOS or BOO, who spend so much regularly on clothes, therefore I suspect that they may find it difficult to gain the volume necessary to be successful.

[pj fozzie] 20/11/2017 13:30

Wife has been very enthusiastic about this company. She fit's well into the demographic they aim at. Have decided to have a small punt and see what happens. Not my normal type of investment at all - normally stick with established stuff that pays a decent dividend. Picked up 30k shares at 17.545 a share. I was surprised I didn't pay any stamp duty - is there some stamp duty rule I don't understand?

Cheers,
PJ

[gheebee] 20/11/2017 11:23

Mike Cooper with a significant holding. Is that the Wimslow Undertaker who made his name and money at Avalon? Can see synergy here. What does the older fashionista need to set off her faintly ridiculous leather skirt and top? A funeral plan of course.

[larva] 20/11/2017 09:50

Getting sold off will be red later


Spreadex have loads to shift of this

[hydrus] 19/11/2017 17:11

Ok Paul well best of luck. I'm a sceptic but equally I'm not always right!

[larva] 19/11/2017 07:35

Ok Chaps

We have 4 problems here

1. If FOUNDER directors have 18% options because they "had too few shares" then who has the rest. They are dumping now i suspect having bought in "pre iPod" for nothing i suspect. Is it reynolds holding this offshore and binning?
Ask yourself why Spreadex is not shown on the AIM Rule 26 bit of the website? Because thats where some worms are
This guy doesn't show up either

]I think someone ought to get the shareholder list and have a rummage..........ahem

2. Cash going out the door. Spending £500k to collect £100k of income is never gonna work.

3. Returns are too high of £847k sales £478k was returned. How much they must be spending to organise and collect all that and they have to clean it.

4, Stock levels are very low. Doesn't have cash to hold stock. So someone buying a frock is gonna be disappointed over christmas

Personally i think this needs a lot more money than it has
U wait and watch it is BUST in a year

[larva] 19/11/2017 07:23

Ok Chaps

We have 4 problems here

1. If FOUNDER directors have 18% options because they "had too few shares" then who has the rest. They are dumping now i suspect having bought in "pre iPod" for nothing i suspect. Is it reynolds holding this offshore and binning?
Ask yourself why Spreadex is not shown on the AIM Rule 26 bit of the website? Because thats where some worms are
This guy doesn't show up either

]I think someone ought to get the shareholder list and have a rummage..........ahem

2. Cash going out the door. Spending £500k to collect £100k of income is never gonna work. A load of the cash had already been eaten up because it took long to float - remember all those loans for 250k x 3 - well that money has now gone

3. Returns are too high of £847k sales £478k was returned. How much they must be spending to organise and collect all that and they have to clean it.

4, Stock levels are very low. Doesn't have cash to hold stock. So someone buying a frock is gonna be disappointed over christmas

Personally i think this needs a lot more money than it has
U wait and watch it is BUST in a year

[paulypilot] 18/11/2017 23:07

@tjbird,

We don't know what the people behind the Spreadex position will do. It's an aggregated position of x number of holders. I hold about 750k shares in SOS via Spreadex, and I'm a buyer, not a seller. In all likelihood there's probably a big holder via Spreadex who is unwinding their position - which is quite helpful actually, as it allows people who were scaled back in the placing to buy in the open market now. I only got about 30% of my application in the placing, and my broker tells me that I was lucky - as lots of people were scaled back to nil.

So I reckon the price is likely to be well supported at c.15p, if it drops further, as applicants to the placing might start buying in the market at that level. So we have maybe 10-20% downside, and unlimited upside.

The downside risk would increase if current trading, and cash burn, are worse than expected.


I'm sure everyone is aware that current revenues are very small. We're buying the future upside, that's the speculative opportunity here. But there's no guarantee it will work.

Personally I think the current share price is about right. I'd be happy to see it stay at this level for now. Then it will be future announcements about trading progress that drive the share price up or down.

For me, it's a 2-year hold. This share is much too speculative for most people.
I made a lot of profit on BOO and G4M, so to a certain extent, am happy to recycle that profit into something that I think is good, but speculative.

Regards, Paul.

[paulypilot] 18/11/2017 22:59

Bear in mind that SOS has about 18% potential dilution from share options. So that needs to be factored into future valuation. The rationale for this was that the joint CEOs have rather small personal shareholdings, so need to be engaged with the upside. I'm normally against dilution above 10%, but can see the logic for it here.

Just flagging up something that everyone needs to be aware of.

Regards, Paul.

[tradewithtrend] 18/11/2017 22:02

Opodio so are you short? If so at what price?

[tjbird] 18/11/2017 20:53

Sales are pitiful and less than 500k

Any decent corner shop prob has that level of sales

[tjbird] 18/11/2017 20:52

Spreadex holder will dump another 5per cent on Monday I suspect

Then this will plunge

[paulypilot] 18/11/2017 19:57

@Hydrus,

Sosandar is definitely a highly speculative investment, that's agreed.
I've researched the company & spoken to management, and I really like the concept (innovative product, addressing an under-served part of the clothing market). Also, the marketing approach (featured every week on Loose Women, and with many other celebrity brand ambassadors - women who genuinely love the product -

I also like Sosandar's website, in that it's taking an innovative approach of being a hybrid of an eCommerce site, and a fashion magazine. This can help them push individual products, through editorial content.

Maybe the company floated too early? As you correctly state, sales are currently tiny. However, I think the early stage growth percentages could be massive, and if that happens it could drive a big share price increase.

If you check out the latest Alexa stats, it's showing strong growth. That augurs well.

I hope the company uses the funds raised wisely. Anyway, time will tell, it's highly speculative at the moment. I hold about 1% of the company, so if this works, it would be a very nice outcome for me! But if growth disappoints, then we'd be looking at a big plunge in share price - so it's high risk.

I'm essentially backing management here. They're the real deal, in my view - Ali Hall and Julie Lavington. They've also got some big hitters in the wider team, including a former Matalan Director, who handles sourcing. The outsourced business model means it should be able to scale up rapidly. Anyway, let's see what happens. Fingers crossed.

Regards, Paul.

[hydrus] 18/11/2017 19:47

Maybe I'm missing something btw. Happy to listen to others views.Best of luck to those who have taken a position.

[hydrus] 18/11/2017 19:32

Looks like this could be a bottomless pit of future cash raises to me. Tiny revenue in a very competitive market. I suspect they will soon burn through cash pile with a bit of marketing. Too risky for me. Bit surprised you have invested Paul.

[paulypilot] 18/11/2017 19:17

@GheeBee - Spreadex only buy or sell shares to hedge what their clients in aggregate are doing. It looks as if (unknown) clients of Spreadex are unwinding a position which seems to have been built up before ORE turned into SOS. This could be why the share price of SOS hasn't risen much since the shares were re-listed - because there seem to be plenty of sellers, who are now able to exit their position in what was a (failed) gold explorer.

So, given that we don't know who the clients at Spreadex are, who are selling, then it's impossible to know whether they are smart people or not. Therefore nothing can be drawn from the Spreadex holding in company announcement.

Regards, Paul.

[andysand] 18/11/2017 18:46

Yes, a good tip from the mail. Will likely send us up 15% on Monday. In any case, there are great things ahead. It's not too difficult to grow from a low base so there should be some significant gains over the coming year. Happy holding until the interims. Then we will see....

[opodio] 18/11/2017 17:21

reckon the company changed hands for 500k not long ago

look at april 2016 entries





someone having a laugh IPOing it at 17 million pounds valuation