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Why so many small trades, shorting force in place to drive the price down? At one point, they need to close and the price will tick up.
I think there's probably worse to come and a heavily discounted rescue fundraise is one the horizon. Shorters will have seen this coming for a long time. If nothing else, their lengthy Going Concern statement in June should have got alarm bells ringing, plus the toing and froing of directors. The last para reads
"On this basis the Board believes it is appropriate to prepare the financial statements on a going concern basis. However, this material uncertainty may cast significant doubt on the Group's ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.
"At one point, they need to close and the price will tick up."
I don't think shorters need to close any more than longs do. It's more expensive to run a margined long position than a short position and, with interest rates increasing, shorters may actually start receiving daily interest on short positions!
Just over 5% of stock being shorted. But it hasent really increased much over the last month.
Other big factors involved here.
NAV is £1 and share price in the 80s….? If I had spare cash I’d buy- this has to be a takeover price?
No chance in my view. £1 NAV, the majority of that value is stock. Stock is worth nothing unless you sell it, to sell it you need infrastructure, staff, distribution, outlets , marketing and pay away commission. That stock is at best 20p in the pound at value. Further that stock is now subject to some financing from their debt facility.
Further again they are losing money, so youll need to find that.
The stock is wine, at cost. If they have to sell to wholesale then they’ll possibly take a small haircut, but it’s crazy to say it’s 20p in the £. Naked’s gross margin is better than many other producers, so I’d expect them to get 90p+ for any stock they have to sell wholesale. The wine market is pretty efficient and shelf life isn’t particularly short. The valuation here is insane in that context.
Other on line retailers have a Share price multiples of NAV, for example HOTC we’re recently x10… and despite its SP cliff fall from £5 to £1.40 it is still x4 Nav.
I Agree a lot of companies have a current SP under NAV, but with almost a £ $ parity some will be a takeover target.
I regularly drive past the Wine society, an online retailer and they are currently doubling the size of warehouse capacity.
If this dips into the 70s I’ll take a few.
Debt providers rarely provide stock finance facilities on a stand alone basis. There is no way I see that they are funding this at more than 50p of cost, 20-35p for a non perishable , easily saleable product at best on a stand alone basis.
Anyway everyone has their views and opinions pending facts. Good luck to all ????
As I said previously, I recently cancelled my subscription to Naked Wine after several years, but my wife is still a member. Today, she tried to purchase some wine but could not. She tried phoning them, but answer phone told her there was no one to take her call. She is now also cancellng her membership and withdrawing her money before they go under.
Wow that's crazy, I wonder if anyone else had that experience
Just my personal opinion. Not trying to scare anyone.
I just called them - straight through and a very helpful person. ???? So not in full panic mode.
Could have just been a hickup in the system or too many people trying to contact them after yesterday's fall.
Angel funds aren't ringfenced protected client deposits under the t&cs??? Anyone confirmed this with naked? They say it only has a parent guarantee on their website ?
Another rns now - gromley to represent shareholders as an unpaid advisor at the current business planning sessions.
Why would we need that?
Are they planning something tgat needs our approval and brought him back for a couple months to negotiate!
Hopefully for a good reasons let see.
Bank holiday rns - Morgan Stanley continuing to reduce. Share price holding up quite well considering the size of their reductions