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on these figures.. seems very over priced to me.
Just eat posted pre-tax profits of £8.6m up from £3.1m. Revenues jumped 58% to £69m in the 6 months to end of June. They added around 4,000 new restaurants to their 40,000. Operate in 13 countries, but three quarters of their business is in the uk. Ceo delighted with progress. So he should be!!!
I think this is a massively over valued stock, they dont offer anything or make any product they just offer a small service which is easily and cheaply replicated. 1.34bn mcap seems ridiculous to me
This company is like an estate agent; creaming off money for not doing much. Just my opinion.
at 80.3 to 1!!! Do you realise the market median is 15 to 1 for the sector? Here's some valuations for you - Just Eat as valued by the Discounted Cash Flow Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 51.34p (78.8% overvalued) Just Eat as valued by the Graham Formula Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 64.9p (73.1% overvalued) Just Eat as valued by the Relative Valuation Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 32.74p (86.5% overvalued) Just Eat as valued by the Earnings Power Value Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 26.94p (88.9% overvalued) Just Eat as valued by the Net Current Asset Valuation Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 4.5p (98.1% overvalued) Just Eat as valued by the NNWC Valuation Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 3.84p (98.4% overvalued) Just Eat as valued by the Tangible Book Value Valuation Technique Current Price 241.7p Mkt Cap: £ 1,492m Implied Valuation* 9.43p (96.1% overvalued) I would say SELL. I don't have any positions in this share, just wanted to give my view.
any reason?
There will of course be people that would prefer not to use a company like Just Eat and continue contacting their existing takeaway(s) directly - However that is of course only one side of the story.. There is an increasing amount of people opting to use the services of Just Eat. There is a proven demand for their services and the fact that the company has continued to expand globally makes me optimistic about it's future and overall, fairly impressed with the progress so far. There are of course risks associated with investing in the shares of this company, with its high valuation.. So I am aware that there has been a consensus of overvaluation amongst many groups and I think initially this brought the price of the shares down.. However I think that the leverage that Just Eat has, skimming off fees from all these takeaway orders is starting to being appreciated by the market by investors a longer term idea. Just Eat has been outperforming the FTSE 100 & FTSE 250 over the last month. It is pretty easy now for someone to download their app onto their smartphone and make an order. It's not like no one would want to use this company.. and I would bet that the majority of their customers are happy rather than unsatisfied with their dealings with Just Eat and go on to use their service again and maybe recommend them. The 'Average Joe' does not know that Just Eat charge the restaurant 11-12% on their orders, and probably doesn't care as long as he gets his takeaway.
I ask myself the question ''would I buy a takeaway meal via an intermediary?''. The answer is no----I would visit the premises and buy over the counter. ''If I were a retailer, would I pay JE to take my orders and give them some of my top line profits?'' No--I would consider providing a top notch service with value for money decent food and engage with all of the local press and local business and develop a thing called customer service. talking myself into a pair of summer shorts.
Finally dipped my toe in water and shorted . Just look at their facebook page. Seem a lot of people are unhappy with orders failing to turn up. Really do not believe all these small takeaways will be willing to pay them 12% on their meagre margins.
Clearly a massive ad campaign. London bridge station barriers exclusively Just East, plus seen ads on taxis, phone boxes ( yes they still exist ). If this campaign tanks SP will surely fail sharply.
All barriers at East croydon BR now covered in Just Eat advertising. Makes a very impressive display. Anybody know if at other stations ?? Still think this could be a good short just a matter of timing. chatting to my local takeaway not joined yet as his business not doing well ( despite good food) this type of on line ordering big in USA but maybe that customers can not walk to local chinese of chippy.
Moneyweek gave them a right slating as a business model particularly on their overvaluation. They pointed that in Norway adding to the standard credit card charge is banned which will have implications for their revenue if other countries follow suit.
Personally I find it offensive that this company makes it's living from doing not much more than sticking it's name on someone else's business and charging for it. Where is the value for customers (increased card charges?). Kind of parasitic; like a letting agent; charges extortionate fees for doing very little.
This is a chance for mediocre restaurants to increase their turnover at cost. Problem is once bitten twice shy!
Still at it. Money to be made on the way down. A Website and some marketing, what else?
They are already very far ahead of the competition as far as I can see in the UK and Denmark and have a lot of net cash for extra countries and ads, their marketing team seem to know what they're doing, I've seen their ads on buses, tubes, youtube etc...they are pushing for that household name, of course what they do could be replicated but the same goes for ebay, asos plus any ecommerce co, customers will go with the one that has the biggest restaurant selection and the one that feels safe i.e you'll get a refund if anything goes wrong, they do have exclusive deals which you can only get online and they have just announced a price promise so that you dont pay less by going straight to the takeaway http://www.just-eat.co.uk/pricepromise I'll agree the valuation is large but remember this is not an Ocado, this is a proven cash generative business that is growing fast (in one interview the CEO said that it is growing faster than it's us competitors), also found this in the share tips: True, the shares are trading on a preposterous historical price-to-earnings multiple of 100. However, if one concentrates on its ‘core’, and profitable, markets – which are Britain and Denmark, then that multiple decreased to 50 times earnings, on the basis of reasonable projections. Furthermore, by 2015 it is fair to expect revenues to double when compared with last year’s levels. In parallel, it is likely the losses in which it is incurring to expand in 11 new geographies will at some point disappear, if it is able to replicate past successes. Under such a scenario, which makes optimistic assumptions for several “unknown unknowns”, the above valuation metric drops to 30. Even so, and despite the fact that it is an interesting business with a strong market position, there is no reason why retail investors should rush to get in now after having being left out of the initial sale, says The Times’s Tempus. I'll be very interested to see the first results but this business should be able to scale very fast. DYOR
Now my take away has a web site, customers can order online and my bank charges only 2.5% for card payments. Avoid like a virus!!!!
I am baffled how this company is valued (100 times PE) as a high tech company. After all their technology is just a fax machine that prints out customers orders. most of the profit comes from charging 40p for every credit card used to order food. They also charge take aways 12% of the value of every order which owners find it totally extortionate. Their is also a charge of £300 if owners change their bank account details. I know all this because I am a take away owner and I have stopped dealing with this company. Now my take away
my question would be, what do they have going for them that makes it likely they can keep their biggest player status? i think it's plausible that many people will indeed be ordering takeaways via phone app etc. sure. and plenty of people will still be eating takeaways then too. but i just can't see what would stop the market getting carved up by all manner of competitors in short order. so far as i can understand, there's nothing special or ambitious about the software and design per se, and also hard to see how they can carve out any special 'added value' space on top of the basic functions of sourcing/ordering/arranging delivery. genuinely, very happy to be persuaded otherwise if people can tell me what enduring significant barriers to entry there are. i have no position at all here present. would be interested to learn more if there is more to learn. but if no such barriers exist in any strength, surely this share will be sliced to ribbons by multiple new competitors? i don't believe that take-away ordering folk will have any particular loyalty to just-eat as a brand. they will order (a) from whoever they can actually remember [so just very temporarily, just eat doing ok as put loadsa money into publicity campaign, and (b) from whoever gives them best discounts/deals -- so soon as the competitors come to play, margins are gonna get severely squeezed.
"Takeaway owners are to face a new testing programme, after a watchdog found nearly a third of lamb takeaways it checked contained a different meat." http://www.bbc.co.uk/news/business-27047970
Quite agree. Anything with a P/E over 15 is over-valued in my opinion and this is on a P/E of about 100 which is just madness. The market needs a strong dose of reality, Avoid like the plague!!
wouldn't touch this with a bargepole. they pumped it u for the float with massive ad campaign. and now - very low cost for new entrants/competitors, what do just eat have that can't be fairly easily replicated? jmo. i'm neither long nor short here, but staying well away.
Some big after hour sells, looks like positions being opened.
*IF* we are seeing a paradigm shift in the way ppl order takeaway (i.e in 3-5 yrs time most ppl will be doing it via an app or website) then this company *could* be huge they are the biggest player in their market at a time when it seems that their idea/change is catching on just like ebay/amazon 14 yrs ago, remember this business is already cash generative, not suprised to see it falling as the conditional trading and marketing was so strong but if the first set of results are strong then this is poised to take off if they can keep their biggest player status.
For me it is overvalued so have not researched them in so much detail, is tanking today 239-240 now, 200 by the end of the week maybe?????