Sosandar Share Price (SOS)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Sosandar Plc	LSE:SOS	London	Ordinary Share	GB00BDGS8G04	ORD 0.1P

	Price Change	% Change	Share Price	Shares Traded	Last Trade
	-0.75p	-3.19%	22.75p	435,942	16:16:06

Bid Price		Offer Price	High Price	Low Price	Open Price
22.00p		23.50p	23.50p	22.75p	23.50p

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
General Retailers	1.35	-6.06	-10.31		26.4

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Sosandar (SOS) Latest News

Sosandar News

Date	Time	Source	Headline
09/5/2019	07:00	UKREG	Sosandar PLC Director/PDMR Shareholding
09/4/2019	11:34	ALNC	Sosandar Reports "Exceptional Growth" Ahead Of Annual Results
09/4/2019	07:33	ALNCF	Alliance News Flash Headline
09/4/2019	07:00	UKREG	Sosandar PLC Trading Update
27/2/2019	15:26	UKREG	Sosandar PLC Grant of options / PDMR dealing
24/1/2019	17:18	UKREG	Sosandar PLC Director/PDMR Shareholding
09/1/2019	14:13	ALNC	TAKING AIM: Christmas Cracker Sosandar Gets Another Upgrade From Shore
09/1/2019	09:33	ALNC	Sosandar's Third Quarter Revenue Beats Prior Financial Year
09/1/2019	07:00	UKREG	Sosandar PLC Trading Update
20/12/2018	12:44	UKREG	Sosandar PLC Director/PDMR Shareholding

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Sosandar (SOS) Discussions and Chat

Sosandar Forums and Chat

Date	Time	Title	Posts
25/5/2019	10:08	Sosandar	1,623
07/5/2019	20:18	BullShiT, Big Sofa Turd No.2 -SOSANDER	114
01/5/2019	14:28	Sosandar at the UK Investor Show	-
03/4/2019	12:10	SOS - will this go bust by Christmas 2019	106
09/1/2019	09:37	Sosandar - The next ASOS. Aren't they all!	144

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Sosandar (SOS) Top Chat Posts

Date	Subject
26/5/2019 09:20	Sosandar Daily Update: Sosandar Plc is listed in the General Retailers sector of the London Stock Exchange with ticker SOS. The last closing price for Sosandar was 23.50p. Sosandar Plc has a 4 week average price of 22.75p and a 12 week average price of 22.25p. The 1 year high share price is 47.10p while the 1 year low share price is currently 16.45p. There are currently 116,189,658 shares in issue and the average daily traded volume is 224,687 shares. The market capitalisation of Sosandar Plc is £26,433,147.20. Read Full Thread Reply
10/1/2019 03:30	paulypilot: DiscoDave - many thanks for your kind words, much appreciated, are very rare in this neck of the woods! ;-) barnetpeter - 2018 was not a good year for me. However, that came on the back of spectacularly good 2016 & 2017. So if you look at my longer term performance, my public portfolio (real time, and not possible to edit, and has no gearing & excludes dividend income), called BMUS, is still up 155% since inception on 1 Jan 2015 - I think you'll find that beats most small cap fund managers by a country mile over the same period. Everyone picks winners & losers. You mention Wey Education - I overpaid for that (smallish position size) in the euphoric highs of 2017, but quickly realised my mistake, and sold it for a 50% loss. It's no great shakes, these things happen. Everyone gets plenty of stuff wrong. The trick is to back your winners in greater position size, then the losers pale into insignificance. G4M - that was a 4-bagger for me, and I sold them in 2017-18 at 700-800p, and bought my apartment with the proceeds. All publicly disclosed in BMUS. Have recently started re-building my long position there, almost at the same price as originally. So hopefully 2 bites of the cake there? Once Blackrock is out, then maybe the price might recover? RBG should be putting out good news on Monday, so am expecting a recovery there. So maybe, just for once, we can avoid the ad hominem attacks, and just focus on shares???! We all get some shares right, and some wrong. Hopefully my in-depth SCVR yesterday on Sosandar helped deepen people's understanding about the company. My "agenda" is simple - to gradually learn more about the company myself, and pass that information on to other private investors. I made a mistake by getting over-excited about Q3 sales. I was expecting £2m+, which on reflection, was over-ambitious. So please accept my apologies if people were influenced by my getting too excited about things. But we're still learning about the growth/cyclicality, since SOS is an early stage business. To be more prudent, in future I'm going to adopt the broker forecasts, and assume that there is likely to be modest top line out-performance. That is the established pattern now with this company, which has already had 5 revenue upgrades since it floated - pretty good! Although marketing costs have deliberately been increased above the original plan, in order to capitalise on the big opportunity they have. I might put together an audio interview with the CEO, to help get more information about the company out to investors. The problem is that Shore Capital notes are not disseminated to PIs, which I think is scandalous! The company pays them a fee, but Shore then restrict access to their research notes purely to their own clients. So in effect getting paid twice for the same work! Meanwhile PIs, who create the market liquidity, and set the share price, are left in the dark. It's awful really. Especially when some better quality brokers, like Liberum, N+1 Singer, and others, make their research freely available on ResearchTree. I suspect we're starting to see a transfer of shares from impatient small traders, to Institutions. Yesterday's Shore Capital note reads very well, and that will have gone out to Instis. The more research I do on Sosandar, the more obvious it is becoming that this company is well on its way to considerable success. Hence a long-term multibagger in my view. No idea what the share price will do in the short term, who cares really? It won't matter in the long run. I think you could argue that this company is currently worth anywhere between £10m and £100m. It's only worth what people are prepared to pay for it. The big prize is likely to accrue to people like me, who ignore the short term background noise, and just hold for the long term. Providing nothing goes wrong of course. As with every share, unexpected things can happen. Regards, Paul. Regards, Paul. Read Full Thread Follow Reply
09/1/2019 09:37	yump: You can't fight a bearish market, unless your investment is exceptional so its no surprise that SOS has come well off its silly high. I'd be more bothered by the key supporters. One who appears to have bought into SOS because they missed out on ASOS - that must affect judgement. Another who I believe is a very serious and quite subtle ramper. I suggest people look up previous stocks that took off for no apparent business reason and then see where those share prices are now. Be careful out there - its time to assess the business, not what the share price does. Read Full Thread Follow Reply
07/1/2019 23:53	radioactive_man: So I have a theory about why the share price moved today and several other times recently. I'll call it the Paul Scott effect. Sosandar qualifies as a micro-cap with a market cap of 33m so it doesn't take much to move the share price (relatively speaking). I think that mentions of Sosandar by Paul Scott may be causing enough activity to move the share price. Now I am a big fan of Paul and have learnt a lot from his columns but regarding this post I am interested with how this dynamic may affect my investment. 27th Dec - Paul reaffirms his optimism for SOS - SOS share price jumps 10% 4th Jan - G4M loses 50% of value (a PS holding) - SOS share price falls 5% 7th Jan - Paul states a SOS TS is due on wed/thurs - SOS share price jumps 6% Also on 27th and 7th MH shows up to give "his" positive view of the share. Sorry, bit mean. While PS is not a tipster, the quality of opinion has probably persuaded a lot of stocko readers to buy his picks, SOS being his highest conviction holding. It is with some pride that I had a SOS position from 13p, before I read about it on the SCVR but I would be lying if I said PS write ups hadn't persuaded me to investigate further. I think the skittish share price recently may have come from weak holders that hang on to PS coat tails. A number of his positions have struggled recently which suggests to me that his growth strategy may be best suited to bull markets and poorly suited to bear markets. Mark Minervini who has a similarish growth strategy sits out bear markets entirely. Some readers may have been taking this view and been scared following the ASOS TS, even if this was largely unrelated to SOS (imho). This is only a theory, and it may not be a popular one, but I think its interesting to investigate. If I am correct then this may partly explain the high valuation (whether deserved or not) but does not change my view of the quality and prospects for the company. I think Julie and Alison know the UK fashion industry as well as anyone so a company that they run deserves a premium. Ultimately the proof will be in the pudding when we see the TS this week. So good luck to all holders! Read Full Thread Follow Reply
27/10/2018 12:58	paulypilot: re post 1077 - please don't invent lies about me. I have not sold my Sosandar shares, and have no intention of doing so. This is a buy & hold forever stock for me. I don't care what the short term share price does, as it's just falling on low volumes, in a general market panic/correction. The fundamentals at SOS are roaring ahead of plan. Originally it was forecast to do about £3m revenues this year. At the interim stage (which includes quiet summer months, in a record-breaking heatwave) revenues were £1.84m - NB remember this is net of returns, so it's a true net revenue figure. Up 407% on H1 last year. That's stunning growth - yes, from a low base, but still it augurs very well for the future. Gross margin is also amazingly high, for such a small company - up from 46% in H1 LY, to 55% in H1 this year. That's higher than Asos's gross margin, and higher than a lot of High Street (much larger) retailers. This proves that Sosandar's designs are what the customer wants, which is fundamentally what this sector is all about. It also shows that Sosandar has pricing power (as it's more expensive than most mass market competitors, but cheaper than "designer" brands). A high gross margin is also proof that Sosandar is achieving full price for most sales. It does very little discounting, because many product lines sell out at full price. What does that tell you? That demand exceeds supply - hence we can expect continuing strong growth, as the company gains in confidence any places larger orders. Compare this with many other online (and physical) retailers, which are continously discounting & doing special offers, to stimulate demand. SOS doesn't need to do that, as the product sells itself, by being better designed than competitors. This is the benefit of having management that are steeped in fashion, from a publishing background - they know exactly what their customers want. Everything else can be outsourced, or delegated, which is exactly what they've done. The sourcing director is ex-Matalan, and other key staff have the necessary experience, e.g. in marketing. IT and logistics are all outsourced, so the team of only about 24 staff at Sosandar can get on with what they do best. It's a fantastic, and infinitely scaleable business model. The returns level is too high, but this should come down in the autumn/winter season, due to the product mix changing. Also, I discussed the issue of sizing with the company recently. I'm told that there's no such thing as standard sizing in womenswear. Instead each company uses their own fit, and customers get to know what size suits them best, through trial and error. Dresses are a more complex fit too, so the returns rate is higher. Returned goods are re-sold, so the only financial impact is 2 lots of postage & handling costs for returned goods. Not such a huge issue at the higher price points Sosandar deals in (over £100 average order value). As regards the placing, again I made enquiries, and am happy with this now. It wasn't a normal placing, in that the company didn't seek new funds. Instead a couple of institutions offered them fresh funding, as they were keen to invest. It was decided to accept the offer, because it shores up the balance sheet (hence de-risking things for everyone), and the dilution of under 10% is inconsequential. In any case, due to crazy market conditions, we can now buy the shares cheaper in the open market, at sub-30p. I think in the long run, this will look a remarkably good buying opportunity. I'm basing that view on my expectations that the company is likely to report very strong autumn/winter trading, after Xmas. Why? Well, we already know that Sept trading was a record month - that's important because it's when new season A/W stock is launched. So a strong Sept augurs well for the rest of the season. It also means the company has time to get in repeat orders of the best-selling lines, to have 2 bits of the cake in one season - a big advantage that eCommerce companies have. Larger physical retailers are generally not nimble enough, with slow supply chains, to be able to do this. All in all, the fundamentals here are fantastic, and it won't be long before the company grows into the valuation. Value investors & people who don't understand the sector, will no doubt think that the valuation is far too high. That's fine, many people (including me!) were moaning about how over-valued Asos was, all the way up from £1 to £70! The fact is that the market is willing to pay a high valuation for exceptional growth companies. I did some comparison work recently, looking back through Asos's published accounts from start-up to now. Putting Sosandar's figures alongside them, Sosandar is actually growing faster than Asos's early days - although to be fair, Sosandar is spending more on marketing, and running heavier early stage losses than did Asos. Of course, that's no guarantee that Sosandar will turn into the next Asos, but it's a bloody good start! There's little doubt that Sosandar is in the process of becoming a much bigger business. It's astonishing what they have already achieved in just 2 years. That's why the share price appears high, for an early stage company - because they're executing so well, and exceeding the initial (very ambitious) growth rates. You don't see that very often. It's expensive on historic numbers, but very cheap based on the potential opportunity here. I have a £3/share price target, with a 2-3 year view - providing of course that stellar growth continues. It may not do, as with everything, there's always a risk of something going wrong. Hence why it's vital for everyone to do your own research & take responsibility for your own investment decisions, and not base it on someone else's enthusiasm. Anyway, as you can see from my public portfolio, Beam Me Up Scotty (I didn't chose the name, Ed Croft did, when he cajoled me into setting up a public portfolio - something I didn't really want to do), I haven't sold Sosandar, and it remains by far my largest holding, both in real life, and in BMUS, which is here for anyone interested: https://www.stockopedia.com/fantasy-funds/beam-me-up-scotty-4990/ People who put up posts here saying things like, Oh I expect Paul Scott has sold out, and hasn't told us - actually this tells us all we need to know about the person writing that post, as that's how their minds work! That's not how I work. I'm a long-term investor, and short term price disruption in the market doesn't bother me - it's part of the process, you have to endure prices going down as well as up, as part of normal market volatility, especially in smaller caps, which can be very volatile for no reason at all. We can choose to be part of the stampeding herds, that rush in & out of shares, depending on which way the share price is going, or we can just take a long term view and ignore price fluctuations. I'm in the latter camp. In any case, my position sizes in small caps are far too large to be able to move in & out, so I don't even attempt it. When the time does come to sell, I adjust BMUS accordingly - as you can see from the history of my public portfolio. Anyway good luck all. We're going through a market correction, which happens from time to time. In my experience that's when, in the words of Uncle Warren Buffett, it pays to be "greedy when others are fearful, and fearful when others are greedy". After all, this game is all about BLASH - Buying Low And Selling High. For that reason, I'm looking to buy more Sosandar on any further dips. There are lots of other buying opportunities out there at the moment too. I spotted several in last week's SCVRs, e.g. PHTM and FLO (I don't hold either, yet) which both look good value and reporting decent figures. There are some cracking dividend yields out there now too. This is the first time in several years that the market is offering us genuine bargains, in my view. The key point with Sosandar is that we're buying in to great management, with many years' experience in the fashion sector. They're doing something genuinely different - targeting an under-served niche for affluent women aged 35-55, with product designs specifically suited to flatter the figure of the target demographic. Performance to date is ahead of the ambitious original plans, so there's everything to play for here. I think the recent share price weakness is an opportunity, not a worry. Sorry for length of post, but lots to discuss! Best wishes, Paul. Read Full Thread Follow Reply
22/9/2018 18:31	paulypilot: No, that AGM post is nothing to do with me. I wanted to attend the SOS AGM, but had a prior booking on the same day, to do a talk about the retail sector at a private investment seminar. 2 friends (not the post 1042 above, which seems to be from someone I don't know) both separately reported back to me about the AGM, saying it was very positive in all regards. Both were impressed with management, and said that the mood is clearly very positive about current performance, and the future. I don't post very often here about SOS now, because I'm happy with my position (about 2.2% of the company), and just intend holding forever. So the short term share price doesn't really interest me. The people constantly trading in & out, and causing a lot of price volatility are a nuisance, but at least they're creating some liquidity for people who want to buy more, I suppose. As long as the newsflow continues to be positive, then I'm looking at this as a multi-year investment. The valuation may not make sense to value investors, but they're probably the same people who sat on the sidelines watching Asos 1000x bag, complaining that it was too expensive all the way up. That was me, after I sold out at 9p! The trick is to learn from our mistakes, not repeat them! Sosandar has real potential. When you spot a tiny company starting to deliver stellar organic sales growth, then it's just a question of ignoring valuation to a certain extent. Just get some target customers to look at the website - I've done a fair bit of that recently, and the reaction is overwhelmingly positive. So in the simplest possible terms, Sosandar is designing products which the target customers absolutely love & want to buy. Therefore I think this is a business which is likely to achieve the scale needed to reach breakeven next year, then profits after that. It doesn't matter if they decide to do a top-up fundraising along the way, because it will be from a position of strength, and could even be at a premium to the prevailing share price, as Institutions are likely to want to get involved here, but difficult to buy in size in the market. I'm looking forward to crunching the figures when interim results come out. I'm hoping for £2m revenues in H1, hopefully a bit more. Then £3m+ revenues in H2. Obviously this year will be loss-making, as planned. Next year should see growth in revenues to maybe £9m+, and breakeven-ish. After that, and we really get going, because the business can then generate the cash to do more & more marketing. We need to think longer-term potential with this share, not worry about a few pence here or there on the current valuation. It would be a pity for people to throw away a future multibagger, due to obsessing about short term price movements. I'm trying not to do that, so this is more a memo to self than anything else, to remind myself why I'm invested here. Best wishes, Paul. Read Full Thread Follow Reply
20/7/2018 11:50	paulypilot: Just because some people don't understand why the share price is shooting up, doesn't mean that it's either wrong, or temporary. People naturally "anchor" to the previous prevailing share price before a big move up, but in this case the doubters simply haven't (yet) realised that the news from Sosandar last week was game-changing. In a nutshell, before the results statement last week, Sosandar was highly speculative. After the statement, we now know that the business model is working, and greatly exceeding forecast performance for this year. This is why the share price is shooting up, because investors are re-appraising the valuation, based on new numbers. If you crunch the numbers, the quarter ending 30 June 2018 delivered £851k in revenues (net of VAT and customer returns). With 73% quarter-on-quarter growth, you can extrapolate out that (at a declining growth rate, because 73% won't be maintained as the numbers get bigger) full year sales (year ending 31 March 2019) are likely to be something like £5-6m. The original forecast was £3.3m, so we're looking forward to a massive beat against forecast. This is driving the share price re-rating. It's not a speculative rise, or a pump & dump. The valuation is simply responding rationally to fantastic current trading & outlook. It's all about growth, and the market pays up for stellar growth, hence the re-rating going on now, on heavy volume too. If people want to ignore sector experts, and think they know best, then that's fine with me. I'm happy watching the money roll in every day as the share re-rates for the reasons given above. By the way, if you're rude to me here, I just block you. I haven't got time for unpleasant fools with nothing constructive to say. Life's much nicer when they're blocked. Let's stick to talking about Sosandar, and discussing the pros & cons, and leave the petty ad hominem attacks at the door. Regards, Paul. Read Full Thread Follow Reply
19/7/2018 10:19	paulypilot: Re TV coverage, Sosandar gets a lot of coverage on Loose Women, and other morning/lunch chat shows. When chatting to the CEOs at UK Investor Show, they mentioned that items which appear on TV typically receive a big surge in orders. One item sold out within 90 seconds of appearing on Loose Women, apparently! Re ORE - I take on board the comments above, from disgruntled holders. But given that it is only of historic interest, as Sosandar is effectively a new company, then I wonder if it might be better to have a separate board here for discussing the demise of ORE? It's not of any interest to the holders of Sosandar shares, who bought in for the eCommerce fashion business using ORE's cash shell. Also, I think the history of ORE should not unnecessarily taint SOS, as there is no operational link between the 2 companies' activities. Nice to see SOS continuing to power upwards today. The short term share price doesn't really matter, as this is a hold forever share for me. However, it does at least give comfort that other investors also see Sosandar's prospects as very bright. It will be interesting to see what Shore Capital say in their initiation note, which should be out fairly soon hopefully. What a pity they're not on Research Tree (yet). I've been nagging the company to explain to Shore Capital that PIs find it very difficult to get hold of broker research, after MiFID II messed up everything. Hence if brokers don't put their research on Research Tree, then most PIs simply won't see it. Given that it's PIs who create the liquidity and set the share price, then this is a glaring omission. Let's hope it gets fixed. Regards, Paul. Read Full Thread Follow Reply
18/7/2018 18:40	paulypilot: The posts about excessive Director remuneration seem to be referring to historic information, when the listing pertained to a cash shell, and previously a failed junior resource junk stock, Oregon Gold, then renamed Oregon plc I think. Sosandar is a clean operation, which just re-used the listing. Adam Reynolds reversed Sosandar into the listing, as I'm sure you all know. If you look at the table in note 6, from the Sosandar Annual Report for y/e 31 Mar 2018, it breaks down Director remuneration into the various parts. The second column is titled "2018 from 2 Nov 2017" - in other words, the period from the listing of Sosandar (first day of Sosandar dealings was 2 Nov 2017). The 5 months from 2 Nov 2017 to 31 Mar 2018 shows the following Director remuneration; Alison Hall £36,667 (£88k p.a.) - Joint CEO Julie Lavington £36,667 (£88k p.a.) - Joint CEO Nicholas Mustoe £12,500 (£30k p.a.) - NED Bill Murray £12,500 (£30k p.a.) - Adam Reynolds £25,000 (£60k p.a.) - Mark Collingbourne £12,500 (£30k p.a.) - Steven Metcalfe nil As you can see, these are perfectly reasonable, modest even, Director salaries under Sosandar's first 5 months as a listed company. Another Director, called Andrew Booth has since been added to the Board, as a NED, with specific & relevant experience in eCommerce and marketing. Therefore, it seems to me that the excessive remuneration shown in the other columns, relates to historic matters, before Sosandar, and also £500k of "fee shares" for engineering the reverse takeover. I think it's important not to muddy the water by confusing historic Director remuneration of a junior resource stock, with the much more sensible/modest ongoing remuneration currently happening under Sosandar. It would be a pity if jaundiced shareholders in ORE would miss out on a potential multibagger of SOS, simply because they're smarting from having lost their money in some rubbish junior resource stock. Sosandar is the real deal, in my view. Management is superb, and the recent trading update was superb - I calculated £851k revenues (which is net of VAT and customer returns) in the quarter-ended 30 June 2018. If you extrapolate out, with more sequential growth (especially in Q3 ending 31 Dec 2018 for the busy Xmas party season), and I think we could possibly be looking at full year (ending 3/2019) revenues of maybe as high as £5-6m. If I'm right about that, then this share is still very cheap. I think the share price should be nearer 50p at the moment, and 100p by the end of 2018, if this kind of stellar growth is maintained. Remember that the IPO plan was for only £3.3m revenues this year 03/2019. So the out-turn could be heading for getting on for double that - stupendous growth, albeit from a low base. Therefore, I think the business model is basically proven now. We just have to wait for more growth to be reported. This should also mean that cash reserves are probably adequate. Although a top-up placing at a much higher share price wouldn't bother me at all. On the basis of the above, I've recently increased my position size from 1m to 2m shares, as I think this has serious multibagger potential, taking a long-term view. That won't happen overnight, obviously, we have to be patient. I don't see this as a trading share - it's a hold forever one - providing the newsflow remains positive. My broker tells me that Shore Capital has institutional buyers who want to buy, but there are no loose blocks of stock available in any decent size. I wonder if Nigel Wray, and Miton Group might increase their position sizes? Other than those two, there are no institutional shareholders, and quite a fragmented shareholder base. So that could propel this share much higher, if Instis have to fight it out in the market to accumulate stock. A word of caution on valuation - the company has an unusually large share options scheme, with 18.4m additional shares under share options, at a strike price of 15.1p. These were granted at the IPO, and it was completely transparent - I had a conf call with management just before the IPO, and they volunteered this information. 16.8m of those share options are for the joint lady CEOs. The thinking being (of Adam Reynolds) that they needed to be super-incentivised, as they're driving the business, and their existing shareholdings of 5% each was not enough. I agree with him. So instead of using 106.8m shares in issue, we need to manually add another 18.4m in-the-money share options onto that, giving a fully diluted share count of 125.2m. Therefore at 28p per share, the market cap is £35m. That may seem a lot for an early stage company, but the market is pricing in (or starting to anyway) the stellar growth, and how the company should be a very much bigger concern in a few years' time (and profitable). Hope the above is helpful info. Regards, Paul. Read Full Thread Follow Reply
03/4/2018 20:56	discodave4: Paul Scott's comments in stocko today, don't agree but then wtfdik......not anywhere near as much as he does but he has been wrong before! :-"Re Sosandar (LON:SOS) - I'm perfectly happy with progress to date. This is an early-stage company, so for me it's all about backing management & the concept, both of which I think are excellent.As regards the numbers, they're in the right ballpark (compared with the Turner Pope note from Aug 2017), although the year end was changed, so we can't directly compare the 9 month figures, with 12 month forecasts.The operating loss for the 9 month reported figures was a bit higher than I was expecting, but not enough to cause concern. However, revenue is growing nicely (from a start-up), and the gross margin is excellent for such small revenues - suggesting that there's likely to be good upside on gross margin once turnover has risen considerably more.There's plenty of cash in the bank for anticipated losses in 2018 & 2019, by my reckoning. So it's just a question of sitting back and waiting to see how things develop over the next 2 years. I'm trying to ignore the share price, as it's not relevant to my point of view, as I am treating this as a buy & hold forever situation (providing the growth continues to be strong).The market has sold off most small caps, especially more speculative stuff, by 30%+ in recent weeks, so SOS has just followed that trend. I don't think the recent share price fall here has anything to do with fundamentals & outlook, which both look positive to me.Taking a long-term view, if SOS does work out, then this could be a serious multi-bagger. That's why I think it's pretty exciting. Short term, the share price could go up or down, I have no idea!Regards, Paul. Read Full Thread Follow Reply
11/12/2017 16:01	harebridge: Paul Scott comments on Stockopedia. Paul writes in the comments (please note that he owns shares in this company):Sosandar (LON:SOS) - "Trading update makes generally positive noises, but gives no figures. Since the share price already has considerable expectations built into it, I think today's news won't necessarily move the share price up. It should however give holders comfort that things are going to plan (or rather, better than plan), hence preventing the share price from going down.The only forecasts I have are a detailed note from Turner Pope from Aug 2017, which is the broker that floated Sosandar. This shows forecast revs of £1.0m this year 03/2018, rising to £3.3m 03/2019, and £9.4m 03/2020.PBT is forecast at -£1.9m this year, followed by -£1.4m 03/2019, and a small maiden profit of £0.1m in 03/2020. Whilst these figures may look unexciting in terms of profitability, they look very exciting in terms of revenue growth. The market would extrapolate out the rapid growth rate, and value the shares on a racy multiple. I can foresee a £50-100m valuation within a year or two, if growth is strong. That may sound crazy, but we're in a bull market, where online fashion businesses that are demonstrating strong growth are given hefty valuations. Just look at the bonkers valuation given to hapless Koovs (LON:KOOV) a while ago, even though it was generating tiny revenues and huge losses.SOS is well-funded for now, and exited the IPO process with net cash of about £7m, I believe. So it shouldn't need to come back to the market for more cash for the foreseeable future.SOS is now one of my largest personal holdings, because I'm backing the experienced, and capable management. If you look at what they achieved in 1 year from startup, it's astonishing. Hence why I think the premium valuation is justified.Note that there is about 18% potential dilution from share options for the founder management, as they had been diluted down to only 5% each from previous funding rounds, and the key people need to be incentivised. Not ideal, but I can live with it. Critics have said that there's something wrong with Sosandar, because management got diluted so much in the early stages, compared with say Boohoo.Com (LON:BOO) founders who retained almost 100% control before floating. What these critics overlook is that BOO was funded by an existing, highly profitable wholesale business (called Jogo/Pinstripe). So the BOO founders already had pots of money, so were able to fund BOO from scratch without dilution. Founders of Sosandar just weren't in a financial position to do that.Anyway, time will tell whether this is an inspired stock pick, or bull market froth!" END. Read Full Thread Follow Reply

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