Member Info for wyndrum

Hi Snowwoman, I don't think ABF (Primark), ever had a PE ratio of 61 in the last recession. Also (and I know it does other things) but Primark is the jewel id the crown and currently ABF is down 30% since December and has a PE of about 13. Its quite a different valuation and by some margin.

well, this is a key level, will it break through 390 or fall from here. My money would be on at least a retrace.
Still, a lot of brave people buying at these levels. Certainly when you think about it, it is incredible that the world is going into recession bordering depression and a fashion stock with an astronomical valuation keeps going up.

Well, that was short lived! ha ha, retesting 250p. time to buy some more at this level

Chart looks ok, came back to test 165p and has bounced off it. last update in may said FY20 was better than previous year and the SP was 230p-240p. 190p looks pretty easy to get to from here? just my opinion

Hi D, if you have done some research into XSG you can see the similarities? This is a tech play of course but, its the same conundrum, will the money last in time for the profits to roll in. The upside is pretty dramatic here but the likely gains must be tempered by the amount of shares in issue but I found the recent take up of the tech by Air France and Renault as to be very significant. If the tech is particularly good at removing the virus when washed then to be able to-re-use PPE could accelerate the take up. But, hey ho, its a punt.

Hi HB, do you have a feel for what KL is worth. Pre C19 it think I read circa £170m?

Hi D. I only "come back" as you say because I am posed a question or see a comment of particular interest. I mean no malicious harm, and indeed if I thought the risk reward was skewed to the upside I would certainly buy in again.
I would point out though on another thread here that the other companies have done extremely well but I think that EVE stood out by omission. I would have thought if sales had been record breaking or "bumper " than the CEO would have said. Nothing has as yet changed my mind to the sales outlook being positive but with a small "p" and indeed now with hindsight, progress by inches rather than yards seems to be accurate. I quite accept that the next update could be excellent but based on what has been said in the recent update and then in a sense confirmed by other foam mattress makers being more upbeat, confirms that its going to be a long haul. I have said before but it bears repeating I think with the enthusiasm of other posters here, that EVE has not turned a corner. It is still loss making. Its closer to trading profitably but not there yet. Once it proves its viability then, and only then will it be rerated and until then the jury is still out. I honestly don't see this as negative per se just as it is. Everything could turn out wonderfully and I hop for all holders it does, no question. All I am saying is that don't let emotion get ahead of the facts. Yes, it is doing much better at controlling costs and buying the time to continue to turn the business around, but the fact it has lost over 99% of its value makes it a long shot, statistically, to survive. As long as holders understand the downside and are comfortable with it then that's absolutely fine. As I say, good luck to all.

I wonder if the rise was due to Taylor Wimpy saying how strong demand was for their homes? It may mean KL is more viable to a speedy sale than we thought?

This isn't a profitable company that just had a bad year and had losses.
Every month they loose money they don't have then 7m in the bank. And if the next 6 months are not as good as the last and they burn through £200k per month then while they will still have plenty of net cash, the market would just see no progress and then you can decide what the SP might be.
This is it for EVE, the next 6-12 months is all or nothing in my opinion. This is a very high risk share with a reasonable to high expectation it will go bust or revert into private hands. Which is fine but just be aware is all I am saying.

Hi BD, I genuinely don't know but what does a "positive Marketing contribution" mean? Does it mean trading profitably, (it may well do but why not say that?) I have not come across this phrase before when reading reports either updates or finals etc. Certainly if EVE have been trading profitably for the last 8 months then that does put a different slant on things to a degree but I still think with retail opening up it will be harder and at the same time imagine, and I am just guessing here, there will be discounts galore to shift stock and to get any sort of cash flow in. All I'm saying is that I will be surprised if there is a quick turnaround in this company, in which case, if I'm right the SP may not move much. If the idea is to make money from buying the shares the return has to be weighed against the timeframe.
So when you (anyone), buys shares, what do you expect to make against what you invested? what price does it go to for you to sell? How long will you hold them for to get your expected return?
Although the outcomes are unknowable you should have in your mind an expectation of results before you buy the stock.
If you (anyone) haven't then, what are you doing? Placing a bet for an unknowable period of time with no realistic goal of what success would be. And all the time, you could lose some or all of your investment.
Therefore there is the risk/reward element. I (and I am pretty typical), buy on at least a 3-1 risk reward and if I cant justify that then I either don't take the bet or get out if things have changed.
I Bought EVE at 1.15 with a view to get out at 1.0p -.90p if the results were poor.my expectation was for 1.75 and hopefully beyond, as we know on the day selling priced spiked to 1.7 and I waited and eventually got out later at 1.4p when it seemed clear to me the market was not impressed. (not devastated just, ho hum).

Anyway, lots of stocks out there and it pays never to get emotionally attached to any bit of company paper, but that is easier said then done! All the best

The concern I have is that if EVE could not push into profit in these exceptional circumstances then its clearly going to be tough and presuming it stays afloat, a long, long process to meaningful profit to affect the SP. It has no usp and its not (according to my pal) a particularly good mattress for the money. Now, the new CEO might be excellent at marketing but if the product is not brilliant then all the clever marketing in the world won't sustain it. Anyway, that's the bear case. As I say we don't buy the product we buy the shares and I have (albeit somewhat flukely) made quite a turn on EVE over the last couple of years dipping in and out, up to and including last week. For now though i'll sit this out and wait for events unfold further. (I moved most of my funds into retail particularly. on DC. and HFD and hopefully the next 2-4 weeks should prove profitable, certainly DC> shot up yesterday. Good luck to all.

Yes, its always nice when a plan works out! ha ha. There was, on Thursday, a really weird trading session moving from 281-311 and everything in between, pretty much constantly. every few minutes to few seconds, big swings. very odd, never seen it before. Put it down to software problem rather than any buying and selling trading pattern. Anyway, onwards and upwards. I maintain my holding in this and have put the majority of the funds into retail, particularly DC. (got in just in time on Thursday, but still another 20-30% on the cards), and HFD, as retail shops open next week or so and people disregard quarantine suggests to me there will be a good spike to the high street stocks, however irrational it may be..
Obviously WOSG is retail (as well as on line) so see this movment as part of that trend. Still plenty of gains to be had as these are the last stocks to benefit from the now, not-so-slow release of lockdown.

Every body, your absolutely right in the bull case for EVE but the point that you must keep in mind in case you are tempted to over commit is that this company has never made any money and is still not making any money, so nothing is a bargain here yet, and its certainly not a steal presently. The update specifically said that :
"Notwithstanding resilient trading to date, there is clearly uncertainty around the trading environment for the remaining seven months of the financial year, including the ongoing strength of consumer demand and industry competition, as store based retailers advance their plans to re-open as early as June,"
To put that further into context I know the MD of an online Mattress delivery co. He has boomed over the last 3 months with record month after record month of deliveries. He has never seen anything like it, that's why in part I though the EVE update would benefit with greater sales, but if it did it seemed muted to me.
So, who knows, this might recover and go on to great things but as I said up top this is not in my opinion a recovering stock yet, simply one who has stemmed the losses to buy more time, and if they could not establish a profitable model yet with all the previous costly advertising to generate enough sales, how do they do it now on a shoe string?
I've played this game for 40 years and the lesson beyond all others and its the old cliché, don't bet more than you can afford to lose. So, if EVE (or any stock you have) went bust tomorrow make sure your loss does not affect your quality of life.

I think the news particularly the US was very encouraging. The drop in the SP ultimately was profit taking I think, as it looks to me that at around these levels (up to 2170) is probably a reasonable valuation including right now, a resumption of growth for 2021. Remember its doubled in the last couple of months and up 25% from only a couple of weeks ago. There are many people , incl. me hopping from 1 stock to another to try and milk these unusual times. Fever is a long term hold (2-5 years) to get back to £40 I think short of a bid. Clearly the ROW and the US is going to be longer term and not quite as explosive as we had hoped may 24 months ago.

er.. not really, its in a trading range having failed to break through on the results. Certainly it could go up but equally down or guess what.... carry on bobbing around. You may have surmised from my last posts that I was disappointed and have sold my holding. I think this is going to be slow, not explosive and I must say the jury is still out as to whether this is a viable business model, and if it is how profitable. The concept of memory foam, in a box, 100 night return, Mattresses are not new any more. So you have to carry on converting people to move away from their current style. And they are expensive when Mattresses start from £100. At £500 there are many decent maybe better value products out there. Ultimately I don't care as I am not buying a mattress but a piece of paper with the amount of shares printed on it. But presently I am not convinced at all that this is a long term hold. Just my opinion

it looks to me, that with the desire to have a big stakes in the co. there was a lot of demand to buy the stock hence the sharp and quick rise in the SP to tempt sellers. Now the demand to buy has gone, the sellers today are having to take much lower prices to exit which then built up a head of steam as some wanted to take their recent quick profit. It does not look as though the XSG story has changed in which case patience is back on the agenda for a bit longer...(The good news might be that when this particular bout of selling is over it will produce a new floor around the 1.20-1.40 level rather than the sub 1p only a few months ago

I am continuing to buy at around 1.50p . (2 further buys today)V Confident that this is going to move and when it does, it will be sharp. Presently the bid/ask is just about ok. That might not last for long either.....

Good point about Amazon starting as a book seller, but why were Amazon successful? It was because they sold the same product cheaper than rival book outlets. That business model was so successful they then rolled it out to include other products. That is where the analogy with EVE imo falls down.

Hi DG, I understand your point but while all revenue streams are important, EVE is about the Mattress. If you don't buy the mattress you are unlikely to buy the accessories. Widening the range to what? Furniture? Curtains? Lighting?
One of the problems with the business model is its lack of diversity. Its not just any old bed Mattress its an EVE memory foam mattress of which you pay a premium for and then after a 100 days (or is it 200 now?) you can return it. Its the Mattress that is the USP. If the Mattress at any time, does not live up to its billing then the company won't survive, as can be seem by some of its rivals. That's the reasons the SP is as low as it is I'm afraid.

IMO, I would offer caution to any expected quick gains after this RNS. Its basically a holding statement. The best news was that there was no bad news which has stabilised the SP. Certainly it was not as bullish as I had hoped on the sales front and indeed , it sounded to me as though sales are expected to decline a bit when stores open again next month.
To go forwards from here it needs to show growth, not just a controlling of overheads and reduced losses. Further, there is a reason why other similar mattress business models are leaving the market. (And its not because EVE is squeezing them out.) Clearly this is a difficult model to make money from. The cost of marketing is greater than the profit of the product. So either margins have to rise (which might be possible but it is not a cheap mattress at present), or growth comes through the benefits of the product via word of mouth. That's a much slower process. My conclusion is that whatever the outcome, short of a take over and why would any company do that right now, is that there is not much chance of significant further SP gains until the business model is proven to generate reasonable profit