tag:blogger.com,1999:blog-6443862031662825789.post1033508809579038515..comments2023-10-09T18:02:34.790+01:00Comments on Paul Scott's UK Small Caps: Snoozebox (ZZZ) - speculative share ideaPaul Scotthttp://www.blogger.com/profile/13081674666652796786noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6443862031662825789.post-80057673874090594522012-08-16T11:43:23.793+01:002012-08-16T11:43:23.793+01:00Hi Mayn,
Good comments. I agree Snoozebox is diff...Hi Mayn,<br /><br />Good comments. I agree Snoozebox is difficult to value.<br />My view is that it could well look pricey in the short-term, but long-term this could be the start of something big - i.e. they have a great product that's in demand (just look at all the events they have already appeared at), and it's then a roll-out - i.e. new units could probably be financed on leases, so not necessarily any need for further fund-raising, possibly?<br />So it could expand to thousands rather than hundreds of units, and international too.<br />No idea whether that will happen, but it's a good upside case.<br /><br />I think your comment on the loan note conversion looks right. I also thought that seemed odd when I read the IPO document, plus of course the bad smell around the CEO - being sued by liquidators of a previous company he was involved with - is a big question mark.<br /><br />Cheers, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-70925585587400143922012-08-15T14:22:37.479+01:002012-08-15T14:22:37.479+01:00Hi Paul,
I looked at these, as I liked the story....Hi Paul,<br /><br />I looked at these, as I liked the story.<br /><br />But couldn't work out any value. <br /><br />Admisson doc says IPO cash will be used to expand to 400 rooms. So £200 a night * 400 = £80k. Assume fair value is PSR of 1 (not sure), so looking for £28m of sales = 350 nights. Cannot see 400 rooms being full for that amount of year. True, we can adjust room-rate figures etc but not in the obvious value ballpark for me. <br /><br />Also, note 6 page 39/40 of admission doc looked odd. Seemed the insiders lent £3m to company for a month and enjoyed a 100% gain as the notes were converted into shares. May have misinterpreted that, though. <br /><br />As you say, history of CEO is not 100%.<br /><br />Thanks<br />Mayn<br />maynhttps://www.blogger.com/profile/05474108265321856982noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-24728975720311355552012-07-16T22:42:58.989+01:002012-07-16T22:42:58.989+01:00Hi SirL,
I suppose the Patent applications are the...Hi SirL,<br />I suppose the Patent applications are the barrier to entry.<br />If ZZZ's Patents succeed, then they are sitting on a goldmine, as they could just licence the idea to others. If not, then others could copy the idea.<br />It seems obvious from the impressive contract wins to date that ZZZ have a great product, which is in demand. Remember there's a fair bit of support behind it too - i.e. needing the staff to set up the temporary hotels, man them, organise the utilities, etc.<br /><br />It's not often you come across a genuinely brilliant new idea, but this seems exactly that to me!<br />Cheers, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-72111718529117514162012-07-15T13:24:32.463+01:002012-07-15T13:24:32.463+01:00What are the barriers to entry here? Branding of ...What are the barriers to entry here? Branding of these units seems minimal - indeed are they provided white label for the event organisers to brand? Surely if the concept looks like it has potential, existing operators like Accor who have (a) expertise (b) contacts (c) economies of scale (d) lower cost of capital will move in and take over the provision of this sort of thing. I guess it's quite capital intensive, which is hardly ideal for a start up.Anonymousnoreply@blogger.com