kryptes
07 Dec 2016
Re: Recent Results You say up again but essentially back where they were a year ago and way below the float price.
TradedOption
06 Dec 2016
Re: Recent Results Kryptes,I guess it'll just have to be our little secret. The shares are up again and the new categories (e.g. IT) have even lower margins than appliances.TO
kryptes
06 Dec 2016
Re: Recent Results Agree with you - the business model simply won't work. Back in 2014 a wise man (sadly no longer with us) quoted this from the Times:“Some of London’s leading hedge funds are betting that AO World’s share price will slide amid speculation that the online appliances retailer makes more money from selling warranties than it does from shifting white goods. ….The shares have since retreated heavily as investors began to raise questions about its valuation. Yesterday, the shares fell as much as 3 per cent at one point before closing at 304½p, less than 7 per cent above the float price”. note - 304p, some 75% more than today's price. Nice web site, quite good customer service - I've bought a few appliances from them - but you can't make much profit shifting big boxes on tiny, tiny margins.
TradedOption
30 Nov 2016
Recent Results Don't really get the stratospheric valuation. The profit in the last results was largely made up from post-Brexit currency gains on loans that appear to be inter-company funding of the European operation. How does the model work? When will the revenue growth, which is admittedly impressive, turn into earnings? Even if you ignore the £14.2m European loss and look at the UK adjusted EDBITDA at £13m that's still a PE of 56. If you take the actual figure for EPS of 0.11p then the PE is knocking 1500. Whoever has been buying recently either knows something, is on something, or flunked maths.Seriously, can anyone explain it rationally?TO
II Editor
22 Jul 2016
NEW ARTICLE: Share of the week: Recovery begins "LSE:AO.:AO World has struggled ever since a shock 2015 profits warning collapsed the electricals retailer's market value just one year after its IPO. But the loss-making group is slowly making operational progress and, after avoiding the bullets ..."[link]
kryptes
30 Jun 2016
Re: Price moving How did that work out. Price moving. That bit right. Butdown
penhome
26 Apr 2016
Re: Price moving Yes, purely technical.Someone on the ACTA board asked for a technical analysis of AO.I expected what I found to be as negative as, like you, I think the fundamentals are weak and I don't really like AO.'s business model.Here's the link to my analysis thread. If the link doesn' work, my main analysis was posted on Sunday at 12.34 on the ACTA board.[link] I worked through the charts, and ended up being short term bullish, much to my surprise!
TradedOption
26 Apr 2016
Re: Price moving Is it a purely technical trade? The fundamentals don't support the current the current share price, let alone a rise from here.
penhome
26 Apr 2016
Price moving Bought into this yesterday at 176.9Here's the chart I posted on the ACTA board on Sunday[link]
II Editor
06 Apr 2016
NEW ARTICLE: Trends and Targets for 7/04/2016 "AO WORLD (LSE:AO.) and Trinity Mirror (LSE:TNI) We last viewed AO WORLD in February 2014 (link here) once the share had traded for a whole day. Rather cautiously, we'd predicted a drop to 355 - this on the basis of 8.5 hours trading. ..."[link]
Ripley94
01 Apr 2016
Re: Trading Statement. SP names major shorters they will not be able to close quickly.
kryptes
31 Mar 2016
Re: Trading Statement. Have to agree with TradedOption. Lots of puff and guff from this company would worry me if I held - hype over substance. Shares were above £3 at one point.
TradedOption
31 Mar 2016
Re: Trading Statement. Even assuming the £17m of UK EBITDA were to hold, which seems unlikely given the implied losses in Europe, that still puts the shares on a 41 times multiple. However analysts reckon on an actual EBITDA loss this year of several millions. Forget irrational exuberance..... This is simply irrational. Perhaps I have fallen asleep and woken up back during the Dot Com boom? Millenium bug anyone?
II Editor
31 Mar 2016
NEW ARTICLE: AO World rocks to profits beat "A year after a shock profit warning triggered a crash to new lows, LSE:AO.:AO World shares are still little better than half the price they were back then. But the tables may have turned after management at the internet domestic appliance ..."[link]
Ripley94
31 Mar 2016
Trading Statement. Rns.. Up 7%
