Thanks for the comments. I understand what you're both saying on the buyout and in fact, I'm not saying that this is going to happen, especially, as you point out the management ownership.
My line of thinking was really just the similarity of markets that they're both going after and the HUGE difference in valuation. Now, I do prefer BooHoo's online-only business model but I couldnt ever bring myself to pay 70 times earnings despite their growth.
But I'd guess BooHoo keep an eye on their competitors like Quiz and it must be tempting for the them to look for bolt-on aquisitions. Especially really cheap, profitable ones!
A disclosure on the 2mln trade will depend on whether the transaction triggered a need to disclose by either the buyer or the seller. If the buyer is someone who previously didnt own any shares then maybe not. I think you have to disclose once you cross above 3% and the trade was 1.6% of the company.
If that was a director buying then they'd have to disclose.
I think they have three days to disclose if it's a notifiable transaction. Might see something monday, might not!
If you ask me, this share was overvalued at £1.50 and was priced for growth, growth, growth. The thing is business is never straight forward and there are ebbs and flows and challenges to overcome all the time. Quiz has had difficulty with third party online sales which they've mentioned but, if you ask me, the share price now is ridiculously cheap.
On growth, it depends how you define a 'growth' share? If it's due to revenue, then growing at 10% (which the company said they were growing revenue (ex wholesale) for the last few weeks) then this is absolutely a growth share. Earnings, for this year look like they'll take a step back from about 5.5p last year (i think) to maybe 5.0p this year (my estimate). So if you wanted to be pedantic then it won't grow earnings this year. But if you believe that Quiz are managing to grow their brand in the UK (both online and through concessions and stores) and Internationally then I think you can make a case for a return to longer term earnings growth next year and beyond. They certainly seem to be making big headway with their own website traffic helped by the marketing and now TV ads. They should be trying to replicate BooHoo. (which trades on about 67 times earnings (which is ludicrous by the way), which if Quiz had the same multiple would trade on 335p! (67 x 5p))
I think the current share price is ridiculously cheap but until the seller either finishes or a buyer comes along to take out the seller, who seems to want out then the price seems a bit stuck for the time being.
Eventually, a rational share price will be established, just hard to know when.
It would help if the directors bought some stock though! I'm still waiting for that! LOL
I've was thinking the same thing on the director buys. I think the main shareholders that sold at the IPO (at 161p) raised £92.1mln for themselves and about £10mln for Quiz. You'd have thought that they could afford to pick up a few at these prices? If nothing else, to send a strong signal of their confidence in the company. I havent given up on them yet though. Lets see over the next few trading days.
The 2mln share trade y'day, to me, suggests that there is (was) a big seller around. Now that a decent sized buyer has turned up, we just need them to clear out the seller and it'll be chocks away!
I haven't bailed. Holding onto this one. I thought the RNS was solid. Mostly old news but nice to see cash gone up and last few weeks seen growth at 10% (excluding wholesale) and own website growing at 68%. Crikey, even with the retail woes this is growing at 10%, profitable, no debt, blah, blah, blah. And going into the busy period.
That 2mln trade was dated today and is 1.6% of the company. Maybe a director buy? Maybe someone else. Might find out next few days with an RNS. But great to see the volume going through. Eventually the seller completes.
I think Quiz had an analyst day y'day morning. I still think this company isn't well know and after the start they've had to listed life, they have to start delivering on their promises. But a 2mln trade is a great start. Let's see how this effects trading the next few days.