RE: BOTB?13 Aug 2021 12:23
Hmmm,
I have to admit, I'm not surprised by this morning's news. One of the major considerations here is that the poor trading simply isn't just down to people going to the pub or on holiday instead. The fact is that, throughout lockdown, there were many business owners hemorrhaging cash that are entrepreneurs by nature and looking at how they could make money in what was the current covid environment. There's no doubting that this sector was hot and the barriers to entry really are very low indeed; a social media presence and a small warehouse to film and store vehicles. These types of competition based companies are 10 a penny now, and it almost seems as though almost every car-related 'social influencer' has set one up to cash-in and inevitably, this has and will continue to have an impact on the pioneers in this sector like BOTB.
This is not a short-term hit here, but part of wider market movement that has significantly more competition now than it did pre-covid. The downward trend here could just be beginning now, as the ever-increasing competition continue to expand their customer base.
If we're being honest, it's been a great run here at BOTB, from the airport days (where I was a keen player), but the PDMR's played a blinder in selling 60m of shares @ what was ultimately the peak period for this sector and BOTB especially. It's hard to see this ever getting back to those levels again and ultimately the numbers and profit-margins will continue to get squeezed as the new and significant competition acquire more of the market share.
Best,
Nate
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