Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi Putneylad,
I know that you are completely distressed. It could be if your average price is very high and the management has already fixed the game to keep the prices low for some more time by not releasing any price sensitive news. On the other side for some one who want to add more shares then this game fix is advantageous. Now adays I dont invenst on any companies during IPO times. More than 80% of companies loose 70% of its value in 3 years from IPO times. On looking at Debenhams I feel that we should never believe on a single company. In sharemarket the Shorters easily make money. If some one shorts all companies listed in LSE then there is a very high probability of making profit than investing in all these Companies. I need to agree that even most of my allocation is in Koovs. All that I will say is to be patient if you belive in Kishore Biyani. Otherwise as some says you shall close the trade and accept the loss.
I think that will happen by what ever date it is mentioned in the RNS. Terms and conditions mentioned in the RNS are just the usual strings as there are restrictions for indian companies to invest in foreign companies countrywise. The reason why UK allows its people to invest around the world is different and India has a different objective because they are struggling to get the foreign investors to invest in Inidan companies. If I am part of RBI I will not allow FLFL to invest in a foriegn company in this situation when India is looking for more inflow of investments. RBI can always restrict FLFL in foreign investments and FLFL can always find a different way to get around. I am not good as you guys at decoding the RNS. But my investment rationale here is not based purely on the 15p funding. 7p to 10p is a throw away price for this company when its backed by Kishore Biyani.
I got the same response from the CFO. I believe who ever emails him will get the same standard response. I really don't want to dig at how they have treated shareholders in the past. As long as they are not doing any frauds or cooking books I dont threat the mangement are frauds.This is not a famous company for investors to flood in. Price action is similar to most of the AIMs stocks that get pumped and dumped. some of the exceptions are Fevertree, Bioventix, Just eat,etc which have a steady growth since listing and so their share price. We are investing on rumours and not on balance sheet. hence the reason for this share price I believe.
Thats me Jambon. hahaha!
So there is a minimum cash burn of 1 mil per month. I can see that in July 2018 they raised 11.1 mil. doing the maths with the support from FLFL and HT media, Koovs can survive til june end. I am sure that none of us here really dont know how much cash they have in their bank account. In the mean time I managed to get the standard response from the CFO. I can't say its reassuring as his job is to send a standard email without breaking AIMS rules.
Thanks for that Putney. Getting inputs from other shareholders are just information. Only an improvement in the balance sheet can guarantee an good share price. I look for long term, but wish to enter early. Hope I am not wrong in Koovs this time. If some one is interested to know the FLFL brands in Koovs website they are Converse, Indigo nation, Skullers which are displayed in less numbers. But Coverstory is the one with huge products displayed in Koovs website.
Technical contract is just a name used to get the money. I dont think that will be a mainstream or even a side business for Koovs. If Koovs does technical contracts then what is the purpose of TCS and Infosys? We need to know how much more Cash that koovs have in their bank account. I think this was already debated here. If Koovs can turn profitable by the time they burn all those cash then they really dont need the additional funding from FLFL. To know that we need to get the trade update positively by April end. Indicators shows that revenue will jump, but that will not turn it to profits due to discounted sales. Even a revenue jump and losses similar to last year will be considered as positive for the share price.
Let me share my thoughts. I am really not concerned about 15p funding.I would rather be happy if that doesn't happen. This will help in reducing the share dilution. I believe in Kishore Biyani rather than Koovs board members. I have been to their stores several times and purchased products in Brand factory, Big bazaar, Central around 10 years ago. The FLFL Investor presentation released in Feb clearly states the roadmap of their partnership with Koovs. If Kishore Biyani says that he will do then he will do it at any cost. He keeps up his words. I think its much beneficial for shareholders to get funds through other roots like the 1.4 Million they did for creating a similar platform for FLFL. Technicall its a cloning of all the IT systems of Koovs platform for FLFL which could be done in less than 400K. On the other side I think that they want the share price to be low for some more time. Web traffic is back to above the one years high. I myself monitoring the coverstory ranges displayed in Koovs website to know how FLFL is making use of Koovs online platform. I think in the month of jan the coverstory products were less than 200 which maxed to 560+ a week ago and now around 430 products are there for display. This clearly means that FLFL is benefiting due to this partnership. To my surprise I have seen many fashions or clothing stores going bankrupt in UK, but that is not the case in India. Due to diverse culture people purchase clothing for various occasions. Women work force has increased drastically in IT and other corporates in the last 20 years which means they will buy more modern clothes. But there are already a lot of American brands in India on top of Indian brands. So to get the consumers any new brand need to give freebies and thats what Koovs is doing now in the name of 40 to 60% discounts. Patience is needed here. I dont expect to get extraordinary returns in this counter in this year. probably we could get good returns in 2020. But we need to stay invested to get those gains. Investing is boring once you invested post due deligence.
If you wait for another 10 days you will know if you have missed the train or you escaped from a huge crash.
I have decided to not miss the train. I need to admit that this is really testing my patience. But not much compared to other stocks that tested my patience for nearly 3 years.
Jambon and others have put up all the reasons why we shall invest in this company at this point of time. Putney on the otherside tried to give unbiased thoughts and raised questions as well. But his anger still seems to be not coming down. Others come every now and then with different names to trouble Jambon. All that I can understand is that there is a big game fixed between HT media, FLFL to bailout Koovs. Iam sure they are going to win so do we. I can't see this another ASOS. But this is not going bust in the next 1 year and it has the backing from Kishore Biyani. Also some one pointed to the FLFL investor presentation about their roadmap for Koovs investment. Probably someone who has knowledge on indian market and UK market will understand more. There is good development happening. Hence I am convinced to park most of my funds here. But its guaranteed that we will not get the returns according to our timelines. Give some time to the poor management. Request the guys to Stop cursing them. Running a company is not easy.
If you wait for another 10 days you will know if you have missed the train or you escaped from a huge crash.
I have decided to not miss the train. I need to admit that this is really testing my patience. But not much compared to other stocks that tested my patience for nearly 3 years.
Jambon and others have put up all the reasons why we shall invest in this company at this point of time. Putney on the otherside tried to give unbiased thoughts and raised questions as well. But his anger still seems to be not coming down. Others come every now and then with different names to trouble Jambon. All that I can understand is that there is a big game fixed between HT media, FLFL to bailout Koovs. Iam sure they are going to win so do we. I can't see this another ASOS. But this is not going to burst in the next 1 year and it has the backing from Kishore Biyani. Also some one pointed to the FLFL investor presentation about their roadmap for Koovs investment. Probably someone who has knowledge on indian market and UK market will understand more. There is good development happening. Hence I am convinced to park most of my funds here. But its guaranteed that we will not get the returns according to our timelines. Give some time to the poor management. Request the guys to Stop cursing them. Running a company is not easy.