Member Info for Watchman007

OldGold, you are treading in dangerous territory.
The ramper in chief has warned us about 'moaning' about this.
Stay positive at all times, who knows tomorrow £4, lets see...

Lending, thank you for your considered and measured response as always. This stock has become a sock draw saver at best and quite probably a sell if the opportunity arises. I am not impressed with the self fulfilling targets and goal post moving the senior management seem to be covertly engaged in and as I recall you said yourself, there is a limit to the amount of incentive needed for a self respecting director or senior manager to get out of bed in the morning and do their job. Also while I get that buying when SP is a 'bargain', what happens if it drops another £1? And before people say that will never happen the same people were saying that when it was £5, £4, £3.50, £3 etc. What incentive would there be for directors to be working for penny stock. I think the short sellers smell blood and will be lurking around for a while yet.

So to be clear, they are spending £25m on existing shares to distribute amongst employees? So not reducing overall amount of shares, merely spending £25m from bottom line to make individuals richer. Is that correct?

I don't think a takeover is viable atm as the market values the business at £2.50 a share and the stakeholders likely won't accept anything less than £6. Probably more. This will make the price unrealistic in terms of a buyout. They haven't done a good job in the battle for new customers and cite 'multi-year' contracts as a big factor in the yoy retention rate number. Well 'durr'. of course retention numbers are helped by locking in your clients. Will these customers be happy to be locked in again when up for renewal?

Berenberg are one of Dark's house brokers. The other being Jeffries. Take anything they say with a very large tablespoon of salt.

Cheer up Charles, I'm sure this is all part of the master plan. You must have seen it coming and didn't share just like that selfish Sheltie. Be back to £3 by days end. I sincerely hope so as like a lot of other people I'm under water with this.

For some people thats a blessing :) The slowdown in new customers in the second half of the year seems to be the issue here.

Sorry to be a bit slow but if there were an order for 2m shares at £2.80 how would pushing the price to £3.15, encouraging holders to sell help the MMs? Wouldn't they be buying above the level of the order they were trying to fill?

Only a select few know exactly when it is but it could be tomorrow. My guess is Thursday / Friday.

Velo
You might want to look up the common definition of exponential!!!
By your own profit figures this company is growing, but not exponentially.
I expect Trading Update on Thursday unless not great in which case Friday (13th).

If I'm correct this was lifted from their last RNS in Mid Dec when the SP was £9.59. In the next week it dropped to £8.02 and slowly recovered until yesterday when it broke out, in my view due to general retail sentiment improving.
I have no doubt that WOSG will deliver the numbers promised when they report next month. They are great at managing expectations and delivering what they forecast. The fact is though that nothing has changed since that RNS and the SP is below the level it was then.

I'm wary of opinions posted with no context. I suspect today is a combination of the update from Next plc and hopefully short sellers covering their positions in light of what may be a better retail Christmas than the market expected. Beware though that rising revenue should be expected, factoring in inflation, in order to stay static, but its margins that are important and those are under pressure.

Why?

Just because the price falls doesn't warrant a RNS. Would like to think there would be a buyout but can't see that happening either. I tend to agree with Lending that this is a growth stock issue rather than DT in particular.

This is down on general market sentiment about retail. Inflation and recession headwinds give little short term optimism.
Good to see the shorts reducing (v slightly). The next update will be in early Feb. This will include the Christmas update and notwithstanding the knock on effects of the postal strike hitting all carriers and therefore foreshortening Xmas online by a day or so I expect this business to post trend busting numbers. A good hold and if it goes lower than £8, worth adding. Please DYOR.

Ade correct, no issues with supply and demand is holding up well. Don't forget that they sell everything from lower end fashion jewellery upwards, not just very expensive watches, so inflation and recession will hit some of their client base. On the flip side their offer is far better than their competitors and they are expanding in key markets.

Hi Ade. This peaked at £16 last year through over exuberance. I know the management and it is solidly run. They have plenty of cash for now and are the largest distributor of Rolex in UK and US. The only clouds on the horizon are mounting overheads and IMO the shorters who can play havoc with their little games. I think WOSG will deliver the numbers they forecast on revenue but at what cost? Rolex are lower margin than say Breitling or Omega but on the up side they turn the stock as soon as they get it due to the ridiculous waiting lists. When the war ends WOSG and everything else will take off. If inflation persists, eventually this will hit WOSG more than it has already. DYOR.

As far as Dark Trace is concerned my only advice would be to totally ignore CR888 in their BB as he is deranged.

This is from Simply Wall St and may explain the drop. Costs are rising and the number of short sellers is also dampening the price.
First half 2023 earnings: EPS misses analyst expectations
First half 2023 results:
• EPS: UK£0.27 (up from UK£0.22 in 1H 2022).
• Revenue: UK£765.2m (up 31% from 1H 2022).
• Net income: UK£64.6m (up 25% from 1H 2022).
• Profit margin: 8.4% (down from 8.8% in 1H 2022). The decrease in margin was driven by higher expenses.
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%.
Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Specialty Retail industry in the United Kingdom.
Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth.

I'll say it quietly so as not to wake up the excitable chap but Charles may have been right for the wrong reasons regarding stock sell off. At lease its released £4.5m of equity onto the market rather than being held by an 'insider'. There will be more of this in the future. Its how its managed that hasn't been great.

Once again Lending you are correct. Ms Eagan is 'only' Chief Strategy Officer & AI Officer. In that role you'd hope she has a good sense of which way the wind is blowing.