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You’re welcome Hops.. that’s a tidy holding. I’m confident that your strategy will reap you very healthy rewards. Wishing you the best with your investment and it’s a pleasure to interact with you. Stay safe and well. Regards..Mr Hold.
MRhold, THANK YOU FOR YOUR CONSIDERED REPLY. (GOOD TO SEE ONE) I entirely agree. I have 60,000 at an average cost
of 22.83p and expect to hold them for at least a year or two. Best wishes, HOPS
Hi Hops. I’m not a surveyor so my guesstimate is just a considered opinion based on the current quoted market cap of the shares v the fact that they just sold Edinburgh for around that level in order to provide additional cash reserves and reduce debt… clearly a prudent decision from the board given the past year’s global pandemic. In addition Elephant and Castle is valued at or around the market cap and then there are all the other assets across Europe (some are owned and some leased from my understanding). That’s without the goodwill and branding etc etc. My guesstimate would be something in the order of a 45%+/- discount v net asset value. Obviously this isn’t financial advice or based on anything except my own research and I could be of course be wrong! Please therefore do your own research and I welcome your opinion/comments. All that aside they are a dynamic company with an excellent reputation amongst the younger global travelling community. They have their finger very much on the pulse and I absolutely love their vision and boutique styling at affordable prices. When things open up again (imminently) I truly believe the company (and the share price) will really motor forward and onwards and upwards! Wishing you every success if you are already in this share or indeed if you are simply considering entering the arena. I hope that’s helpful.
Mrhold
I agree, but what do think the asset value is?
I’ve been accumulating this share for the past 9 months and it’s nice to see it increasing. It’s net asset value (break up) is so heavily discounted I’m amazed it’s taken this long! I absolutely agree with the last post on here from “tired&confused”. An incredible opportunity for substantial gains in the share price going forward.
Still can't understand why such an obvious Covid recovery play has so few interested. Business has conserved cash and sold one Hostel and will reopen to customer in good shape. IMHO.
The young, who will be the principle customers, have little to fear from Covid and should flock back when given the opportunity.
Still time to get in on what I estimate to be 30% to 50% uplift if things go well.
AIMHO and DYOR
Another tick up today, so far anyway!
Still can't believe a Business which can get going again almost instantly (in the UK anyway) is still so cheap!
AIMHO and DYOR
Tidy little rise since last post: The rational for investing is still the same. Safestay will be rammed with young people, the same people who want top go to concerts and events and have no fear of Covid at all!
If you missed the likes of the obvious Ciniworld spike consider this a very good alternative with massive upside potential.
AIMHO and DYOR
Not much activity on this board which is hardly surprising.
Safestay is pretty much mothballed at present but as we exit Covid (hopefully!) it's a Business which can easily be started up again. Young, fit customers who can travel and afford to take the risks are unlikely to be too worried about Covid given the majority, if my 'young adults' are anything to go by, perceive the risks to them, weighed against the benefits of getting out there and seeing the world are absolutely worth taking. My youngest is already planning, as soon as she can, to go travelling. It's not Covid that's stopping her now, it's the rules. I thinks she's bonkers but she throws back at me that at the height of the AID's pandemic, when infection meant certain death in the long run, people still had casual sex and weighed the risks against the rewards.
Covid isn't going to kill most under 50's, they are more likely to die in a car crash in any normal year than from Covid. Given this and the frustration they feel seeing the brief period between end of education and early career and the inevitable onset of more responsibilities slipping away, I have little doubt they will fill up Safestay's hostiles as soon as they are given the chance, the pent up demand is there.
Of all the hospitality sectors, one that's key demographic is so closely aligned to those at least risk from Covid bodes well for the long term prospect of this business.
People a pilling into Carnival betting on the recovery of the cruise business as the vaccine is rolled out but have, so far, missed this obvious recovery play.
AIMHO and DYOR
Adding these down at 10p is looking like a decent decision !
Anyone know why SSTY has gone up so much today? I see no news, other than a 2021 better story, maybe, but that's a long way off.
Price going up on hardly any volume, MMs must be short of shares now
Heading that way with the worry about further lock downs..
Berlin and Warsaw open for business. Hoping for a Monday RNS to update the market and not just the travellers.
RSI entering the buy zone, let’s see what happens this afternoon
It's a great recovery play and with very low interest rates for years to come it's also a good hedge against future inflation!
A bit more volumes today prior to expected opening RNS
The hostels are all well positioned in city centres, so should be good for young domestic travellers, while It will take a lot longer for the school trips to start again . A cautious reopening balancing cost vs demand, is sensible. Looks good value to me also and if the aggressive growth continues they should be able to pick up some new properties while business maybe distressed.
Thanks holdlong, lets hope the hostels fill up fast for opening!
I see there doing a 50 percent extra free deal at the minute should help them get busy.
At 17p, the shares trade at 30% NAV
Net asset value per share increased to 56p as a result of the increase in the valuation of the London Elephant & Castle property to GBP26.8 million, up by GBP10.8 million since the last valuation performed in 2017.
Anyone know what all of the properties would be worth roughly? Debt around 25 million, Mcap 11 million. Looks cheap!
“According to trend forecasting agency Globetrender** our demographic is more risk tolerant, highly adventurous and value driven” says Safestay’s COO, Nuno Sacramento. “We want to show our young travellers that we are doing everything possible to protect their safety, but that they can also have fantastic travel experiences too. We have curated hyper-local itineraries for each of our hostels as they open to highlight the best activities on the doorstep. So it might not be a museum but it will be the best place to get a takeaway pizza and eat in the nearby square or park!”
Holiday bookings 'explode' as travel restrictions ease
Https://www.bbc.co.uk/news/business-53206148
Safestay’s hostels in London and Edinburgh will open from 17 July with safety measures including contact-free check-in; screens in reception areas; packs with masks, hand sanitiser and gloves handed out on arrival; new cleaning protocols and dorms restricted to the same group of travellers.
https://www.theguardian.com/travel/2020/jun/26/uk-hostels-to-reopen-july-but-without-dorms-or-socialising