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Hi Putneylad ,
Agree with your statement on the increase in their stocks listing 'All seems to be running as per normal with Koovs now increasing their own range to over 2000 products, up 50 from yesterday.'
This doens't look likely to fail now. They are doing against what ever they RNS'ed. These are not conservative measures. I will be adding more. I believe the funding news may come in the 2nd or 3rd week of December before the Christmas holiday.
I think this is the time to hold tight with your current holdings. Everytime when the funding was sorted the share price shooted 5 times from its low. So this time it could be 10p to 12p. I also noted that this Share is in under the control of MM's ATM. I been waiting so long for the next upcoming move.
All the best guys!
1) Koov : Both Koovs and FLFL help each other. Koovs created the online platform for Brandfactory. FLFL allowed Koovs to have concession stores in some of the Central Malls. And some more to be mentioned.
DEB : Mike Ashley and the Board of directors want to throw each other out of the company. Bot hhad too much of ego that caused Debenhams to be taken over by Lenders.
2) Koov : Koovs got very less loan notes (I dontknow the numbers to be honest, people here say it is 10+ million) and that too from the chairman Waheed ALi itself)
DEB : Debt had went out of control. I think it was roughly 600+ million.
3) Koov : revenue and social following numbers, online conversion rates are improving except that it is still in losses.
DEB : revenue fell down and losses increased.
2) Koov : No Rent burden and no debt burden (I don't consider cash from Waheed as Debt burden)
DEB : store rents were huge burden
Issues that I see in Koovs is that
1) 1.1 million cash burn per month is bit of a hickup to me. I believe FLFL do think this kind of cash burn rate is too high.
2) even if we get 6+ million funding from FLFL it would cover only until july or August the max. And after that what is the plan? more cash injection through other potential investors until 2022 as that is when some of them think Koovs could turn profitable.
To my knowledge KOOVS were talking for the last 2 years.
I was forced to do a mini top up as I could get the shares with 80% discount from my avearge price.
My rationale on topping up at this time is
1) I think that Waheed Ali will be forced to stop this company to go bust. I really don't know if he can pump in 10 million or 20 million. This will help him to take control above FLFL when FLFL is helpless due to RBI intervention. I dont think that FLFL would be able to resolve this funding as they are under the RBI radar due to the Amazon deal. RBI used to overlook at many things. This is the best time for Waheed to increase his holdings without breaking existing terms.
2) Most of my funds have been pumped here due to Kishore biyani's interest. I really dont trust this managment. But given the situation I have no other option other than to top up and bringing down the cost price.
3) Koovs share price have went up 5 fold from its lowest in the last 4 years, once in 2016 and 2018. I think the next up move is long overdue.
4) Evenlthough its in losses, all the other numbers are improving. so in the worst case some one will buy this whole company whose market cap is just 8 million. I suspect that Waheed will allow others to over take his business. Waheed is very clever to burn the cash from other investors first before the company turns profitable. I believe he really knows when this company will turn profitable. So until then he will try to mug some other investors like FLFL and in the worst case if no one is interested then he will pump in his money. If he does a one time top up of 20 million in cash for a share price around 10p that will resolve this companies cash position atleast for the next 2 years by that time this could turn profitable.
5) Never thought that this share price can touch 2p. I still remember PASCHA talking about 2p. It could be his luck or AIM listed companies have very high probability of going below 1p.
6) I still keep some funds aside in case if this touches 1p then I should know that I need to do a final topup before it goes bust. I think there wont be any news until the 3rd week of December based on Koovs managements past behaviour.
Is this the best investment option in this world? I don't think so. Lets see where this leads to.
All the Best guys!
I am sure some of them will be in panick attack today due to the timing when this RNS has landed. I am aware that RBI used to be too vigilant for indian investments to foreign investments. I also noticed that FLFL always find a different way to keep Koovs surviving. Not sure for how long they can keep this company away from its death. Even if there is a better trading update is landing next week, I think that this news will overshadow the good trading update if there is one really.
Putneylad and Jambon: My suggestion for all of us is to stay quite. Stock markets and IPO's are designed to legally rob from the common people. Do you think that government is not aware of this? why do you think gambling is leagal in UK? All that the government wants is just tax. They dont care about who robs from whom. Dont waste your time in fighting with these guys. Hope we all will be lucky to move out in a good spike if there is one ever to come and dont miss that if you want to get out. The overalll market mood itself is not good. In bull market even a crappy stock could sky rocket. we are already in recession and this company is in losses. To justify the current market cap of Koovs should atleast make a profit of 1.5 Million which will give roughly a PE of 20. stay cool and be prepared to write off your investment as well in the worst case. Our only hope is Biyani. But he has lots of other plans on multiple businesses than reviving this company. Some thinks that FLFL needs KOOVs badly. I literally laugh on looking at those comments. We are actually over looking the fundamentals. We need to give more time and thats it. Either we will loose all or Koovs will be bought out by FLFL if they can throw 50+ million. In think Indian's don't value this company for anything above 100 millions if the ywant to buy this now when its revenue have not even crossed 20 million . Well sold stories by Waheed and Mary IMO.
Koovs CFo getting 175K is really questionable. This has to be raised to Biyani now. they can make a 100K savings per annum.
I have heard about Loyal customers or Loyal employees. There is nothing called Loyal companies or Loyal shareholders. None of the companies in this world really looks for loyal shareholders.
I belive people in this chat room remembers what happened to Debenhams and the latest one is Avanti communications.
Just because I invested in a company, doesn't mean that the CEO's are responsible to make profit for some one who easily bought the shares by anywhere through internet.
I am not sure if KOovs signed up any agreement with FLFL that they wont buy shares from open market. I guess that the CFO might have invested in cryptocurrency or properties market rather on Koovs as he is not confident on Koovs. We can't force him to buy Koovs shares. At the end of the month he just need his salary to pay his bills.
ASOS period is all gone. you can't find another ASOS or JD sports or whatever. The market conditions, competition and demands in those ages were different compared to the current market.
Also remember that India got all the internaional brands. So Koovs is not going to make huge impact in reality against what their management has expected.
I am sure we need to wait patiently. Don't get fooled by the RNS. Something is happening at the backend which none of us know.
It is in the hands of Kishore Biyani now. He doesn't have time to listen to Koovs shareholders concerns. He need lots of money for his own company expansions and he is possibly creating some buffer cash to survive the recession in india that just started. I think that is the reason for the 250K token payment. I am really interested to see how Koovs will deal further funding requirements once FLFL crosses 30% shareholding. I guess Kishore Biyani will be forced to buy Koovs in the situation.
But this is not going to happen in the next 12 months.
We just need to stay calm.
Jambon, your statement clear shows that the managements intention is to keep the share price low. Dont know whose plan it is. Though I know some of the benefiters of low share price.
Sorry to ask this. How many times will you allow others to fool you? We should never invest our money in a company just based on the promises made by their CEO. Both roadmap and the balance sheet should be considered for making decisions. IT doesn't mean that I never get fooled. But once I distrust a management, I will never change my opinion after that. Again my money is here only on Kishore Biyani and now the company belongs to him logically. I am sure he is so patient which means there will be no hurry to review this company. He will take his own time, but it will happen before its too late. My opinion is that he will buyout this share within the next 2 year or so.
I've noticed that Jambon and Putneylad's opinion about management keeps changing. I never believed this management. My money is on Kishore Biyani and I am not here for Waheed or his team.
Pointing day traders is shameful. If the company operated profitable then how can the share price stay low. They have to stop talking like kids and show the real profits in the balance sheet. The current company is in the hands of Kishore Biyani, not with Waheed anymore.
I got a feel that the managements intentions is to show progress but to keep the share prices low. hence in most of the rns they mention about the expected sales numbers which a peanuts. This is a tactics to keep the SP at low price. Who will benefit it? ofcourse it will be biyani and HT media. If they dont want to keep the SP down they would have ignored the expected sales price in the rns. I dont think that the management really want to be super transparent after these many years.
Hi Putneylad,
I hope you have good understood about economy. The reason why I told about page industries is to show the intense of recession in India. I do have good investments in india markets and I am tracking it for 14 years. Since Koovs operations are in India, it can't perform differently when the whole market is recession mood. I now understood why Koovs sp was not improving inspite of any good news. I prefer to see both the sides of the coin instead of showing only the good sides of Koovs.
Christsian Westphal seems to be in ABFL for only 10 months. Not sure if there is much to prove his capability from his 10 months tenure with ABFL. Spent some good time in india for the summer holidays. India is in recession. I have witnessed it. All Vehicle companies were on negative growth for the last 2 qtrs. Page industries(Jockey India) which was on high growth since 2008 was on negative growth in the last qtr. TIme to be cautious. Anyways as ususal I was forced to do a top up today. Cant watch this price without doing a topup.
After todays morning dump I though that this is the usual pump and dump when the price have fell down to 7p.
But the last 3 trades tells a different story.
1) 250,000 at 7.40 valued at 18.50k at 16:25:47
2) 386,165 at 7.60 valued at 29.35k at 16:25:56
1) 200,000 at 8.58 valued at 17.18k at 16:27:45
This is a clear evidence of the Market movers entry.
The share price was at the average of 7p to 8p for the last 8 months. A break out should be enormous.
But I am not excited with this move. It has a long way to go. I am not going to sell ATM.
Hope the price will be high when I am away for summer holidays.
After many years I now feel comfortable when the share price of my holdings are going down. Its only because of the conviction that I got in one company. For me this is a 'Bulls Eye'.
Will be happy if I go coma for 10 years and then come back to evidence what the share price will be.
It would be really interesting to know what happens if koovs want next round of funding probably after an year atleast.
Since FLFL will have 29.99 percent at that time, they will be forced to take over koovs according to takeover code.
I also believe that it can't be lower than 28p if they want to take over within 1 year of the last placing at 28p.
Only Putneylay or Jambon could sense if koovs was having the intention of allowing FLFL to takeover Koovs.
I can only dream of the kind of takeover of Footasylum by JD sports.
Its a wait and watch game. Really dont have the guts to sell my shares in the next 2 years unless it touch 40p to 50p in short time,
Rampers will keep ramping.
muggers will keep mugging.
shorters will keep shorting.
Rampers will continue banning any shorters.
And I decided to keep buying. Yes I have been forced to buy at this price only for Kishore Biyani. I believe in the worst case Biyani may take it over at the price of 28 p. There is only two possibilities , either this is a multibagger ( highly possible from this price , but will take some time) or all my money flushed.
Hi Putneylad,
I know the answer already. But just want to ask you if this Is your only investment?
Hi Putneylad,
I know the answer already. But just want to ask you if this Is your only investment?