Tom Winnifrith Bearcast: Union Jack & MyHealthChecked in the doghouse, congratulations to Matthew, his Mrs to be and the dog
I reckon that Deliveroo (ROO) has delivered to my home once. It was okay but - in my view - a bit of a rip off, but it was something a bit different for the family to try. As for Deliveroo shares I have never owned them, regarding the IPO a few months ago as being at a bonkers price. Since the share price low of early April, the stock has pushed up but if you did participate in the IPO in March, then you are still losing money. Last month here I wrote some thoughts on its ‘progress’ but observed that I was still avoiding the shares as ‘the underlying reality answer we all need to figure out is where profitability is going to be in full year 2021 and 2022’. That’s the trouble with a company where the mention of ‘gross profit’ means that it is all going to be comedy EBITDA centred (at best).
Back in April I observed that Deliveroo (ROO) shares had not only had a shocking IPO but ‘there is not enough excitement for me to get involved’ HERE. Well if you bought the stock at the 390p IPO price then it remains an absolute shocker, but if you did so in the mid-April period then you have made a 30% gain. Well done if that is the case. The recent move includes a positive 4% share price move today, as it has published a second quarter trading statement which is ‘ahead of expectations’ with ‘growth guidance increased for the full year’. What excitement as gross transaction value (GTV) ‘has grown 76% year on year’.
Call me boring but I don’t really like IPOs. Therefore when I was offered the opportunity of participating in the Deliveroo (ROO) IPO a few weeks ago I said something along the lines of ‘thank you but no thank you’, but noted down the thought of having a look when it published some numbers after it had listed. After all, even I have used Deliveroo (admittedly just once) in the last year and have certainly seen its cyclists delivering near me many times.
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