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This is definitely in the unliked category of shares at the moment. I have a mate who complains abut the continual noise of the little mopeds going past his house on the corner. I keep seeing coffee turning up at my neighbour's gate daily. This is not going away for sure and on a 3-5 year time frame I see a 3-5X from here. Could still go down further but I would see that as opportunity. I think I'll start to accumulate shortly.
I really don't understand this as a valid reason for not investing, are people in the city that short term in their thinking that they can't wait another 2 years for the B shares to revert? I would rather have the founder in charge, at least to start with. Seems like this share is all or nothing, if ROO ever starts making a profit on its huge revenue stream this is an absolute steal. If not, it goes to 0.
What the hell is going on here i follow 30 shares this is the only one in the red fell sorry for pi who got in at IPO price you could not make it up there is something serious going on here think 99 percent of people underwater absolutely rubbish share could it Go to 50p the way it's going strange to think if people had shorted this they would have made fortune anyway good luck all Mike
AnacottSteel1
This is disliked the same way as THG ...in the sense that the CEO has too much voting power...and the City just doesn't like it .....
There are gold-plated B shares which carry 20 votes each.
Shu is the only holder of B shares, which gives giving him control of around 57% of the voting rights for 3 years after IPO
(at the end of that period the B shares will automatically convert into A shares).
This is being played 100%. I bought this a while back £2.30 & sold @ £3.30. Now it’s @£1.19 I’ve been waiting to get back in but not sure I want to time catching a falling knife as been doing that for 6 weeks THG. The shorters own this IMO. Gonna wait and see but I personally believe in Roo. I have a friend works at little Waitrose & very busy with Roo. Unfortunately with the shorts Algos in play its worth waiting as the SP is detached from the company. Also Shu knows his stuff.
The Series F round in 2017 valued Deliveroo at £2bn, and in 2019 further rounds it was valued at £4bn then £7bn. It's definitely quite interesting to know that there are so many institutional investors currently underwater here.
I know some riders that earn even 6000 poinds a month. Of course they have to work 12 h a day but i know one person who earn it on monthly basis. Average is 3000 a months so can you people stop saying that drivers don’t get min wage. Haga.
Deliveroo did not make a profit. If a company makes £350 million and costs (all costs) are £550 million it makes a £200 million loss. I’m guessing your not an accountant (an either an I).
Let me make it simple if you buy a car for £1000 and sell it for £1100 but advertising it, getting it cleaned/serviced an up-to date mot cost £200 you haven’t made £100 you’ve lost £100.
You can’t say a company has made a profit by ignoring costs!
Which were roughly 550 millions in 2020, company made a profit of 350 millions but that was not enough to cover fixed term costs. This year profit is expected to up but that wont be enough to cover these costs.However another challenge is keeping riders as an average rider stays with deliveroo for 10 months which could be due to poor rates that deliveroo is paying to its riders. If company is ordered to meet minimum wage regulation then that would increase its costs massively.
ryanf,
whether its MCAP at £2,668m is attractive or not ....I really couldn't say...I certainly wouldn't just judge it just by the share price
....it is an interesting sector and very competitive ..and I have been following things a little......but ..it isn't an investment for short term....it is a business growing for ..say 2-3 years time
Will pop once the us markets open up
Poker, the fear was that the demand for food delivery was waning. It clearly isn't, and the market now realises this. Given the valuation and growth opportunities, Roo is attractive at these levels.
more shares?
"Doordash earnings were smashed"
revenue was up, but they reported lower than expected adjusted EBITDA and overall net income...due to increased investment
EBITDA was $47m down from $94m in the same quarter last year ,which was below the $73m the analysts had expected
The revenue growth % though has actually been slowing for 3 straight quarters
Doordash earnings were smashed, up 24% in AH so I'm buying more here tomorrow!
Goldy, if your picks are anything to go by, this is the biggest buy signal for Deliveroo.
Deliveroo has strong brand recognition and has built up a large customer base and has a vast amount of valuable data on its customers purchasing habits......I doubt they really care at this moment in time that they aren't making a bottom line profit...they are investing in the business and growing market share...
There may well be some consolidation in the market ....I am interested in whether Delieroo and Delivery Hero could make a good get together ..with DH strong in Asia
Just eat or Uber eat will snap this depressing share.
None of these delivery companies make a profit yet. None. So you either believe all of them are going to dissappear, or there are going to be some big winners. We shall see.
Profitable if you take out the marketing budget! Why not say profitable if you take out delivery drivers .wages! Or how about Roo would be profitable if it didn’t have to deliver orders! Face facts Deliveroo does not make money. It needs to spend money on marketing if it ever hopes to make a profit! Which I don’t think it will as pandemic ends and people visit restaurants rather than sit with an expensive pizza will watching TV.
May be you are right
Do you really think all of these quick delivery companies are going to just dissappear? And all these restaurants and retailers are going to go back to the hassle of individually hiring their own delivery drivers, vehicles etc? I suppose it's possible but I don't see it happening. As I've said, deliveroo is already profitable if you take out the marketing budget, I think it's just a question of when they become big enough to be profitable overall.
And a lot of their most popular restaurants were shut during lockdown which impacted sales.
Interesting but why should 135 be the bottom here? I'm not sure I can see any reason for support at that level and tbh certainly not for the 2.5 billion mcap. Just saying.
Agree Goose. Just because brokers listed Deliveroo at £3.90, a lot of investors subconsciously think that is the level the stock will return to at least. The sad reality is the founders probably couldn't believe their own luck and sold out, leaving PI holding the bag. Roo was still loss making when restaurants were shut - says it all. There is now so much competition, every week there's a new delivery service/q-commerce platform emerging.... I can't see where the turnaround is supposed to be