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This is a much stronger business based on the update today. Net cash with a clear focus on delivering value rather than mindless growth. Their instagram ad has nearly a million likes, clearly customers value the brand. Managed to top up at 51.70p, still hugely undervalued. Expect a rerate!
So they clearly discount to clear and they have not had to go to the extremes they reserved for. However, in terms of that impacting client behaviour down the line, I doubt it. They may well be sensitive to this and use trade deals to dump inventory ... that would be the smarter play along with spend based discounting such as spend £1000+ get 30% off.
Seeing inventory dumping across different sectors now and best thing is to offer consumers access to what's being offered (and not taken) by trade.
To move stock I presume they are heavily discounting the wines, what does this mean for customers long term? will they be accustomed to hugely discounted wines? That could be an issue
CCI(commodity channel index) positive divergence pivot , provides a measured sp target if 59.55, although equity volatility as measured by the average true range may vary the target sp. There is a weekly price pivot top at 59.5, which may orovide resistance. Volume today, on the current rally is high in comparison with previous volume. DYOR.
That all seemed pretty positive .... particularly the £20m cash which was clearly down to inventory reductions. The £1.5m coming back on previously provisioned stock was also an indication that the stock provisioning in it's entirety is 'sandbagged'. Did not think you'd be able to get more at this level this morning ... I was of the opinion the cash element was key over operating loss which is all impairment/provision driven. Intangibles are a joke ... hate the things!
We were promised an update before the formal results in July. Have been happy adding at this 50/51p 'trap' it has been in on no volume, since that holding increase. If they report that cash position in that £17m range (ahead of expectation).... what sort of bottom line are they likely to report for the financial year. Does it remain a bit fugly or will there be upside there too?
The 2/2/24, trough low was breached on 23/2/24, which negated the notion of an intact uptrend. So, I would consider the reverse head and shoulders target unlikely to be met. Also had a look at the fundamentals page, which was not encouraging, so I am removing WINE, from my watchlist. DYOR.
Secular uptrend from left to right on 3 month chart view. Reverse head and shoulder price formation break upward, above shoulder line of the formation, so sp target is 93. Retail sector, is still technically in a downtrend until the sector can close above 2422. Volume on chart supports the overall bullish view of WINE. There is overhead volume from previous trading in the area of the price target of 93, which would likely impede progress beyond 93.
I understand tipped in IC today too.
Nice recovery here from lows.
If you go on the website, pretty much every wine is now part of a massive sale. The prices they're selling really are ridiculously low. Good for the consumer but looks like a desperate attempt to raise cash to me. Last time I saw wine going this cheap, the company went bust and the wine was never delivered (it was fine wine, so I lost over a grand).
Or will it end the year with another hangover .......
The key this year was to survive and Naked Wine has done that effectively. I am backing this one to be multibagger next year. I topped up this morning in anticipation. GL all.
Thank you for the correction! I score a zero on reading comprehension :(.
I read the beginning of the RNS which says 7.5p shares, but later it states the actual price.
I should get clear some money to put in Naked Wines. I have a very little position, but it looks like there's a lot of room to grow.
No it's definitely from their own pocket - neither the Chairman or NEDs have options. And the announcements include the purchase prices, which are at market
The director buys in the last couple of days felt like the directors were investing in the company, but I have the impression they were exercising options to buy shares at 7.5p, vs the 53p the share is at the moment.
Not a bad thing in itself as directors hold a few % of the shares, but not the same as paying shares from their own pocket at market price.
I was rather hoping for this to be taken private but probably wishful thinking. Probably left money on the table but sold out on Friday.
Negotiating down with suppliers is one thing but since many are small businesses and likely insure credit, I consider that the next risk faced. They don’t have much in the tank if credit insurance limits are reduced.
Can anyone with some experience with this sector please explain what are the plausible courses of action for Naked reducing stock through negotiations. Presumably it is:
Cost per bottle goes up
Contract cancelled and termination fee paid
Loss of exclusivity
I just can't see how reducing purchase orders to reduce stock is positive. I would understand if it was just a case of cancelling contracts with unpopular winemakers
Do they have a strong presence in Germany?
Investmentaktiengesellschaft für langfristige Investoren TGV have increased their holding from 6.07% to 9.69% these past few weeks.
Lots of automatic trades today for blocks of 7,500 units
Certainly looks as though something’s afoot
Decent amount of buys just went through again. Hoping for a hotel chocolat type moment….!