Market's view on Sosandar
Published on April 2024
- Stock Watchers predict an opportunity to buy shares at 10p soon.
- Annual revenue growth trends at Sosandar have shown a slowdown from 138% to 44% and now to 9%, with aims for £100m+ revenues and a 10% margin.
- Stock Watchers note a pattern where share prices increase before results announcements and then drop, regardless of the news.
- Suggestions are made to invest in the company for the long term, with potential for significant price increase after 10 years.
- High street retail expansion for Sosandar is considered an unknown, and the outcomes of their first few store openings are suggested as critical to watch.
- Positive feedback on Sosandar’s forecasted profitability despite a marginal loss, with the company’s self-financing of store roll-outs and lack of debt highlighted as strengths.
- Concerns are expressed about the company’s ability to meet guidance and reduce promotional activities, with some Stock Watchers selling their shares due to these uncertainties.
- The market’s reaction to a slight miss in expectations is viewed as overly punitive by some, highlighting the strong management and strategic direction of the company.
- Stock Watchers share mixed views on the company’s omnichannel strategy, with some optimistic about its potential to drive future success.
- A significant interest in buying shares is indicated by some Stock Watchers, emphasising the potential undervaluation of the company despite execution risks.
- The potential for Sosandar to be a takeover target is discussed, with private equity partnerships seen as a possible scenario that could offer shareholders a substantial premium.
- The move towards bricks-and-mortar retail is debated, with some Stock Watchers seeing it as a positive step, while others are cautious about the associated risks and execution challenges.