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By Tom Winnifrith | Friday 24 November 2017
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I always defer to Paul Scott on matters retail. He is the guru. He got Boohoo (BOO) right and I was wrong (before I turned volte face and was right). So if Paul Scott says he has bought 1% of Sosandar (SOS), as a fellow shareholder I am cheered.
Amid some quite utterly daft posts on the ADVFN Bulletin Boards from folks who cant read a balance sheet or a prospectus Paul sailed forth the other day and noted:
Sosandar is definitely a highly speculative investment, that's agreed.
I've researched the company & spoken to management, and I really like the concept (innovative product, addressing an under-served part of the clothing market). Also, the marketing approach (featured every week on Loose Women, and with many other celebrity brand ambassadors - women who genuinely love the product.
I also like Sosandar's website, in that it's taking an innovative approach of being a hybrid of an eCommerce site, and a fashion magazine. This can help them push individual products, through editorial content.
Maybe the company floated too early? As you correctly state, sales are currently tiny. However, I think the early stage growth percentages could be massive, and if that happens it could drive a big share price increase.
If you check out the latest Alexa stats, it's showing strong growth. That augurs well.
I hope the company uses the funds raised wisely. Anyway, time will tell, it's highly speculative at the moment. I hold about 1% of the company, so if this works, it would be a very nice outcome for me! But if growth disappoints, then we'd be looking at a big plunge in share price - so it's high risk.
I'm essentially backing management here. They're the real deal, in my view - Ali Hall and Julie Lavington. They've also got some big hitters in the wider team, including a former Matalan Director, who handles sourcing. The outsourced business model means it should be able to scale up rapidly. Anyway, let's see what happens. Fingers crossed.
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