"Despite three crashes, the worst start to a year on record, a Brexit vote and a Donald Trump election win, stocks did brilliantly in 2016. A slump in bond yields and collapse in sterling meant equities were the only show in town, sending ..."
"Online fashion retailers have been popular investment recently. LSE:BOO:Boohoo.com upgraded sales forecasts again yesterday, while UBS has just added another 23% to its price target for LSE:ASC:ASOS. Now, a great 12 months at Australian peer ..."
Good trading statement
excellent addition in non exec chairman
now profitable from Q4
£40m (55%) of market cap covered by cash and stock
note the option strike is 53p but they don't vest until 150p, 200p & 250p - new chairman must be fairly confident as his reward structure appears to be entirely dependent on moving the share price 3-5 fold.
lots of buying over last few days from what I can make out - meant to buy some myself at 47p but missed the trade and took some at 53p instead.
This company has GBP35m odd in cash on balance sheet and a market cap of around gbp100m, so taking one from the other, the market is valuing at only GBP65m a business with a dominant presence in Australia / Asia, and fast emerging businesses in the UK and the USA . That's ignoring the growth that will come from the Philip Green / Mike Ashley tie ups.
With a normalized ebitda of around (AUD6-7m) GBP3.5m this puts the stock on a PE in the mid teens.
Compare this to ASOS on a PE of 50-60 !
and BooHoo on a PE of around 30 odd !
And neither ASOS nor BOO have the growth potential that MYSL does.
Very weird what has happened. But take the free kick while it lasts !
Not sure that Ashley or Green owning the company makes sense.The problem being if controlled by either party would 3rd party sellers who provide most of the goods wish to use MySale.
Whilst I see some potential,my fear from a present investment point of view is that the cash will run out before the company makes a profit.Overheads seem high.How active all these millions of claimed members are is open to doubt.
There is also a fair amount of competition for obtaining stock to sell on commission and from other selling outlets,although from a financial point of view acting purely as a sales portal is attractive.
Major c*ck-up on the IPO has made the headlines and there was an opportunity to buy in. Looks like Sports Direct have taken advantage and bought a big stake (5%) which accounts for the turnaround late this afternoon.
Mysale looks 'cheap' in comparison to the listed (though much larger) peers - Zulilly and Vipshop trade on 8x historic revenues cf. Mysale 4x. Mysale also now has 2 major suppliers taking a stake in the last month - Arcadia boss Philip Green owns c.22% and Sports Direct (5%).
As one of the major constraints for this type of business is the ability to source stock, these strategic investors will certainly help future growth....
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